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What Are The Various Ways To Ensure That Your Annual Audit Goes Smoothly?

Auditing may be considered as an intimidating process by the business owners as it is one of the key fundamental processes which must be conducted by the firm from time to time with high accuracy in order to attest that the firm performs the business in accordance with the principles, laws, and regulations and includes the inspection of all the records, statements and documents which may signify the working of the firm and its all activities.

Some ways through which a firm can ensure that the audit process goes on smoothly include the following: 

Assist the auditor:

The auditor and the company share the weight and responsibility of an audit equally. Both the entities face a lot of pressure during the audit. The auditors may face the burden of completing the process within the specified time and budget without any delay as they may have to engage with many other similar firms and conduct the audits. Similarly, the firm may also want to complete the audit within a short duration. So, it is always the best course to assist the auditors while they perform the audit and corporate with them by providing them with all the required documents and facilities.

Provide accurate PBCs:

During an audit process, the auditor may provide the firm with a timeline and a list of items and documents required by them in order to conduct the audit smoothly. These items may be generally called PBC (Provided by the Client) in business audit jargon. It is the duty and responsibility of the firm to provide such documents and items on time. The firm must also ensure that these records and documents are error-free and accurate. The Auditors must not be put in a position where they may have to find the records themselves out of a box, which may result in wastage of time and effort.

Cooperate with auditor:

Sometimes the auditor may find some discrepancies or errors during the inspection. It may be due to the incomplete documents provided by the firm or due to the absence of required reports and documents. In such situations, the firm must have the empathy to understand what the auditors are in need of and provide such documents. If the firm cannot provide such documents or if it is impractical to gather such data, it must be communicated to the auditor without any hesitation. The firm must be transparent during the audit process, and the firm must disclose every aspect to the auditor so that the auditors can assess the prevailing situation and apply alternatives to evaluate the data and documents.