Many business owners dread the word "audit." But a statutory audit conducted by a professional firm is nothing to fear — especially if your records are well-maintained.
Phase 1: Pre-Audit Planning
Your auditors will request a pre-audit checklist — typically including bank statements, the trial balance, general ledger, payroll records, fixed asset register, and prior-year reports. Review and preparation typically takes 1–2 weeks.
Phase 2: Fieldwork
Auditors examine your records, verify balances, and test transactions. They look for completeness and accuracy of income and expenses, existence and valuation of assets, completeness of liabilities, and compliance with accounting standards.
Phase 3: Draft Report
A draft management letter is issued highlighting any material findings, control weaknesses, and recommendations. You have the opportunity to respond to findings before the final report.
Phase 4: Final Audit Opinion
The auditors issue one of four opinions: Unqualified (clean), Qualified, Adverse, or Disclaimer. An unqualified opinion is the gold standard and what most businesses receive when records are in order.
At Avatechtax, our audit team communicates clearly throughout the process and works collaboratively with your finance team to make the experience as smooth as possible.
