How a start-up can prepare for its first-time audit
While it is important for start-ups to focus on their goals, it is equally vital for these firms to ensure they don’t neglect other areas that are crucial to the success of their company. One such area is audits.
Knowing what information is required and where to find it, especially if it hasn’t been fully documented, could help reduce preparation time ahead of an audit given the breadth of information required.
For a seamless audit process, companies generally require records related to:
- Accounting for contingencies
- Accounting lease agreements
- Accounts payable
- Cash accounts
- Fixed assets
- IT control processes
- Liabilities and obligations
- Monthly or year-end processes and controls
- Revenue recognition process