Is Your Company Ready for an Audit?

by | Feb 5, 2024 | Insight-Post, PKF Texas - The Entrepreneur's Playbook®

Join us as Kimberly Henry, CPA, CEPA, an Approachable Advisor in our audit department, shares valuable insights on how clients can prepare for the upcoming audit season. Discover the proactive steps to stay in touch with auditors throughout the year, discuss new transactions, and set expectations for a smooth audit process.

Jen: This is the PKF Texas Entrepreneur’s Playbook, I’m Jen Lemanski, and I’m back with Kimberly Henry, one of our Approachable AdvisorsTM in our audit department. Kimberly, welcome back to the Playbook.

Kimberly: Thanks for having me.

Jen: So, we’re getting ready to go into busy season here, and you know, a big part of our practice is audits, what do you recommend clients do to get ready for an audit?

Kimberly: Yeah, so great question. Well, first, we always recommend that they stay in contact with their auditor throughout the year, new transactions come up or they have new accounting treatments. We want them discussing that with us during the year so that we can all agree on the correct and proper accounting treatment going forward. But given now that we’re approaching our a busy season we recommend that the clients start reaching out to us and discussing timelines. That way both sides can get ready, know the expectations and get them on the schedule. Next, I would recommend reviewing your trial balance. Go ahead and review your prior audited balance and make sure agrees to the audited report, and then go down the line and make sure every account has a reconciliation and review them for accuracy.

Jen: And so, we’ve talked about busy season. That’s historically, if you’ve got a December 31 year end, that’s, we’re doing the audit January through April 30, right?

Kimberly: Yes, exactly. And it all depends on required deadlines such as bank covenants or just filing deadlines by the board. So, it varies. But yes, it’s all pretty much scrunched into January to April.

Jen: Perfect. Well, we’ll get you back to talk a little bit more about some audit topics. Sound good?

Kimberly: Sounds good.

Jen: This has been another Thought Leader production, brought to you by PKF – Texas the Entrepreneur’s Playbook. For more information about this and other topics, visit pkftexas.com/insights. Tune in next week for another chapter.

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