Image by West Virginia Blue via Flickr The audit of any firm is a stressful period for its employees and stakeholders. However, there are various ways and means to reduce the complications involved. For starters, one must make it a point to maintain proper records at all times. An audit focuses on the raw data available for decision making and tries to find an impartial and logical link to the conclusion. There is no value judgment involved in the audit. The professional simply wants to verify whether established rules and practices are followed in the decision making. The audit may be related to finances or to the overall management of the organization. In such a scenario, making all the essential records available to the professional will simplify the task. Vouchers, bank statements and other such documents will make it easier for the auditor to assess whether the financial statements have been prepared properly. Many big firms set up a permanent audit committee that coördinates the audit procedure with the professionals. You may not be a big firm but having a committee consisting of one or two other employees may simplify the audit of the firm. Instead of waiting for the auditor to walk in and demand documents, the committee can arrange everything well in advance to save time and effort. The idea of allowing a third-party to analyze the work done by your employees may seem repugnant at first. However, audit is a legal and practical need. In such a scenario, try to coöperate with the auditors instead of treating them like your enemy. At the end of the day, you will be the person who will lose if your business gets an adverse remark in the report submitted by the auditor.         … [Read more...]