by Josh Dzyak, Director
and Caroline DeRhodes, Manager

How painful was your most recent financial statement audit? How many journal entries did your auditor recommend? Did you get a “clean” opinion on your financial statements or was there a modified opinion that identified possible issues? Was the process too lengthy and too cumbersome?? How much was the audit a drain on your staff?

Audits are never fun and rarely easy. In an audit, an independent accounting firm examines financial transactions and reports to make sure that they’re materially accurate. This annual process often leaves businesses scrambling to collect information, enter data, and create reports. It’s time-consuming and complicated.

It doesn’t have to be this way. The cleanest and easiest audits are those where the necessary information and reports, processes and procedures are developed long before an audit is performed.

The Dembo Jones Client Accounting Services (CAS) team provides the ongoing accounting proficiency that makes audits efficient and painless. CAS is an effective way to streamline operations, engage in thoughtful financial planning, and ensure high quality financial management, performance and reporting. Read our previous Insight here that explains CAS.

How can CAS help the audit process?

Control: The tighter and clearer your internal processes and procedures are, the more timely and accurate your report – and smoother the audit process – will be. Creating controls such as segregating duties, conducting regular reconciliations, managing access to data, and using standard document formats streamlines the audit process and mitigates the risk of a material finding or misstatement.

Expertise: When you know what to expect in an audit, you can be fully prepared. The Dembo Jones CAS Team knows what to expect; many are former auditors who know what an auditor will request and look for, including financial schedules and easy-to-read reports. By being proactive in assembling relevant financial information, you can reduce the number of auditor-suggested journal entry adjustments, reduce the length of the audit process, and lessen the impact on your staff resources.

Insight: CAS professionals bring specialized knowledge and industry experience to a business’s audit process. They identify the unique risks, trends and opportunities for improving performance and managing financial systems. And that leads to a more accurate audit.

Focus: With a CAS Team devoted to preparing for an audit, required information is identified earlier, requests are more focused, and reports are produced quicker. A company’s managers and finance staff will not be bogged down in the audit process; they can instead fully concentrate on their day-to-day responsibilities.

Savings: Preparing for an audit takes time – and money – even if the preparation is internal. The efficiency of outsourcing audit preparation results in a quicker and more efficient audit; this may lead to lower audit fees since the books will be clean and there will be less follow-up, further testing or additional audit work. On a larger scale, when external CAS professionals work with a business, the internal accounting department can be smaller and more focused, which reduces payroll and overhead expenses.

We’re ready to help you get all the benefits of outsourced accounting. Contact our Client Accounting Services Team to explore how you can save time, money and headache with your next audit.