An audit is a review of an organization’s financial records and practices to ensure that it operates in compliance with various regulations, laws, or other standards. Audits are typically performed by accountants or auditing firms on behalf of the company being audited. In this blog post we will discuss 10 steps to help you successfully plan and execute an audit for your business.
Draft an audit plan -Determine the scope of the work to be performed by the auditor and what records will need to be reviewed (e.g., financial statements, contracts) . Establish a timetable for completing the work in accordance with applicable laws or regulations (including filing deadlines), company policies, and contractual agreements.
Identify any significant risks associated with conducting the audit that may affect its outcome or significantly influence how it is conducted; then determine appropriate ways to reduce such risks as much as reasonably possible before beginning work on the audit. If necessary, amend your plan accordingly. Consider engaging independent counsel if you have not already done so at this stage in order to help.