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How Small Businesses Can Prepare for an Audit

January 07, 2019

What is an Audit?

Anytime a 3rd party examines a report, process, company, or department, that entity has conducted an audit. One of the most common audit types is the financial audit, where a CPA firm reviews information in a company’s financial statements. Outside of a financial audit, companies can undergo several types, some of which are industry specific.

Common Audit Types

Compliance Audit

Those working in education or other regulated industries might regularly experience a compliance audit. The audit ensures the organization is remaining compliant with applicable standards for its industry.

Information Systems Audit

This audit examines IT systems and software, data security, and computer systems. It ensures that IT systems remain protected against hackers while also providing the right information to permitted users.

Workplace Audit

A workplace audit focuses on HR processes—recruiting, interviewing, hiring, onboarding, and more. The audit reviews compliance with employment laws through each of these processes.

Prepping for an Audit

No matter what type of audit your business is preparing for, it’s better to collect all the necessary information throughout the year rather than leaving the prep work for the last minute. Here are a few tips to ensure your business is ready for its next audit:

  • Investigate unusual activities throughout the year.
  • Document all processes as you go.
  • Hold regular planning meetings with the assigned auditing team.
  • Ask questions throughout the year.
  • Document and review the audit, discussing findings during the process.

The greater insight and understanding you can gather throughout the year about an upcoming audit, the less surprises you’ll likely encounter during the audit itself. When you do the leg work up front, it’ll be smooth sailing when crunch time comes.

Workflow Solutions for Your Business

Here at Pacific Office Automation, our workflow experts recommend effective solutions to help solve your business problems. Head over to our small business solutions page to learn more about office solutions for your business.

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