Audit readiness begins well before the audit period
ends. Or so it should.
But now it is January and maybe the auditors have just started
calling with their first round of document requests, anxious to get
the ball rolling while you are still closing the year. The
pressure is on, but there are a few steps to take that will help
focus your efforts and get you through the audit rush as painlessly
as possible.
1. What are your biggest risk areas?
This does not have to be a full-blown formal risk assessment;
focus on areas with the most significant inherent risk, as well as
those with significant audit risk.
Aside from challenges unique to your business and industry, you
can expect that auditors will enhance testing around key risk areas
such as revenue recognition policies, complex accounting estimates,
and related party transactions, as well as current hot topics like
cryptocurrency and segment reporting, where applicable to your
business. Additional areas to
