How do I prepare for an audit?

How do I prepare for an audit?

Preparing for an audit involves several key steps. First, gather all necessary financial documents, such as balance sheets and income statements. Next, review your internal controls and ensure they are functioning properly. Would you like more detailed steps?

Yes, what specific documents do I need?

You will need tax returns, bank statements, invoices, receipts, and any contracts related to your business. It's also helpful to have prior audit reports if available.

How far in advance should I start preparing?

Ideally, you should start preparing at least three to six months before the audit date. This gives you ample time to organize documents and address any issues.

What if I find discrepancies in my records?

If you find discrepancies, it's important to investigate them immediately. Document your findings and correct any errors before the audit to avoid complications.