02 Dec 3 Steps To a Successful Financial Statement Audit
1. Identify auditor and sign financial statement audit contract early.
It is highly recommended to find a prestigious audit party and sign audit contract from November 2016 to efficiently control the workload and avoid the busy season ( January to March 2017) as well as to ensure service quality and get the best service price.
2. Pave the way with preparation for your financial statement audit.
Typically, an auditor will schedule a planning day to consult on overall plan for the audit and to discuss what has been going on with the business and establish a timeline for the audit and start collecting information.
Keep in mind it’s helpful for your auditor to understand how certain processes work and what’s risky for your business. Allocating time and/or appointing someone, like the chief financial officer or human resource personnel, to ensure any documents that had a financial impact, good or bad, on your business in the last year, will come in handy in guiding your auditor. Gather documents tied to new leases, loans, clients, contracts, etc., and compile them (Business Record Management) saves rush and fuss of collecting information on a tight deadline.
3. Pick a positive perception of your financial statement audit.
As auditors, we’re trying to help your business do better, and make decisions that alleviate financial stress. Being patient and setting aside time to answer the auditors questions will keep you informed on the progress of the audit as well as keep it moving toward the finish line. It’s also important to know there will be follow up when we leave your office, so it could be a few weeks before the audit is completely done.
Although your audit requires some work, the paybacks are abundant. The audit not only assesses your overall financial condition, but can also identify complications with financial management and financial reporting, which can help to identify ways to reduce risk and strengthen internal controls.