We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

How Do I Comply with Audit Procedures?

By Nicole Long
Updated: May 17, 2024
Views: 5,798
Share

Businesses must ensure they do everything possible to comply with audit procedures. For compliance audits this includes being available to speak with auditors, provide access to contractual documents, and allow auditors to inspect various business processes. Those looking to comply with financial audits must provide access to accounting and financial data, contracts, and personnel files.

Audits are a way of reviewing a company’s practices and operations. They can be either compliance- or financial-based. Compliance audits focus on the actual operation of the company, including business practices and processes. A financial audit focuses instead on ensuring the company abides by accounting standards and financial regulations.

Complying with compliance audits begins with allowing auditors to have access to various officers and employees of the organization. This includes making sure those in charge, such as managers, supervisors, and company officers are available for interviews concerning business practices and processes. Compliance auditors may require access to employees at all levels to ensure processes are employed as reported. Access to employees will need to occur in private without interference from supervisors, managers, or other employees to ensure auditors receive accurate and truthful information.

Providing access to contractual documents is another way to comply with audit procedures. Contractual documents that should be available include those related to management responsibilities, ownership of the company, and any business procedures or processes. Another part of the compliance audit includes reviewing current practices and comparing them to contractual or documented business processes to help identify safety concerns.

Financial audits require companies to provide auditors with access to all pertinent financial data. To comply with audit procedures, companies should be prepared to hand over documents related to taxes, balance statements, ledger entries, and payroll. Other documents necessary to complete a financial audit include bank statements, check registers, and a listing of unpaid sick and vacation time.

Contracts and other documentation related to the business will also be necessary to help comply with audit procedures. This can include rental and lease agreements as well as vendor contracts. Other documentation that will need to be provided to auditors includes a listing of board members, any resolutions, and minutes of the latest board meetings.

A wide variety of additional paperwork and documentation can also be requested during a financial audit. Those looking to comply with audit procedures should be ready and willing to produce personnel files, copies of prior audits, and legal bills. Auditors may also request copies of paid and unpaid vendor invoices or statements related to petty cash.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Editors' Picks

Discussion Comments
Share
https://www.wisegeek.net/how-do-i-comply-with-audit-procedures.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.