A Better Audit Experience: Setting Up for a Smoother Process

3 Min. Read

When audits go off the rails, it’s not just about the audit opinion anymore—it’s about the impact on your finance team’s morale, the increased costs, and, worst of all, the risks to your company’s compliance and financing if deadlines slip by. Through years of working with clients at ZRG Interim Solutions, we’ve seen firsthand the disruptors that make audits painful and long. Here are the top culprits and how to eliminate them:

1. Lack of Audit Expertise

If no one on your finance team has handled an audit before, navigating auditor requests can be a guessing game. Key items often missed include understanding exactly what the auditors need, when they need it, and the time and resources it takes to meet those demands. Without experienced guidance, the process slows, leading to frustration on all sides.

2. Limited Internal Bandwidth

Fast-growing companies are often running lean, and adding an audit to an already stretched team can spell disaster. When finance teams are focused on scaling or implementing new systems, taking on an audit on top of everything else can feel nearly impossible.

3. Unprepared Accounting Records

When records aren’t “audit ready,” everything from incomplete books to missing backup documentation causes delays. These common issues can create a stressful experience:

• Incomplete books that need serious cleanup

• Missing or unreviewed journal entry backup

• Unfinished account reconciliations

• Unsupported complex or unusual transactions

• Revenue recognition and equity transaction errors

• Inconsistent accounting policies

An unprepared company will face endless back-and-forths, inefficiencies, and possibly even audit team turnover, resulting in additional delays and costs. However, with careful preparation, audits don’t have to be painful.

Avoiding Audit Pitfalls

By addressing these common challenges in advance, you can streamline the audit process and set the stage for a smoother, more productive experience. Here’s how:

Undergo a Pre-Audit

Conducting a pre-audit lets you review and clean up your financial records before auditors arrive. This preemptive step allows for addressing high-risk areas, reconciling accounts, and ensuring supporting documentation is complete.

Hold a Planning Session with Auditors

Conducting a pre-audit lets you review and clean up your financial records before auditors arrive. This preemptive step allows for addressing high-risk areas, reconciling accounts, and ensuring supporting documentation is complete.

Secure the PBC List Early

The PBC (Prepared by Client) list is critical. Understand each item on the list—why it’s needed, how to provide it, and what format is required. Clarify any ambiguous requests before the audit kicks off. An audit support expert can be invaluable in managing these details.

Set Internal Expectations and Assign Responsibilities

Every PBC item needs an assigned owner and due date. Appointing a central point person—ideally an audit support expert—can help ensure tasks are completed on schedule. This coordination reduces delays and gives auditors a go-to contact for status updates.

Schedule Regular Status Meetings

Frequent check-ins with auditors prevent misunderstandings and keep the process moving. Auditors often need clarification or additional documentation as the audit progresses, so proactive communication is essential to address new requests effectively.

Starting the Audit on the Right Foot

An audit requires focus, energy, and collaboration across departments. By prepping in advance, you reduce interruptions to everyday operations, alleviate pressure on your finance team, and minimize costly audit adjustments. With clean, well-organized records and a strategic approach, the audit becomes an opportunity to reinforce best practices within your financial operations.

The Payoff of a Seamless Audit

A proactive, managed approach to the audit offers these advantages:

• On-time, on-budget completion

• Cleaner books and accurate financial data

• Reduced stress and decreased risk of deadline penalties

• Process improvements and operational efficiencies

Once the audit is done, your team can return to what they do best—driving your business forward. Don’t let your audit disrupt the entire organization. Take a proactive approach for a smoother, more productive experience.

Need support preparing for your next audit? Contact ZRG Interim Solutions to see how our experts can streamline the process, allowing you to focus on what matters most—running your business.