Whether driven by lender requirements, investor expectations, regulatory compliance, or strategic growth initiatives, an audit often marks a key milestone in your organization’s journey. While it can feel daunting – especially for first-timers – knowing what to expect and how to prepare can turn it into an opportunity to strengthen financial reporting and build stakeholder confidence.
Our audit team brings deep industry and technical knowledge to support organizations across sectors. We work closely with you to verify financial statements, evaluate controls and accounting policies, and review key processes. Beyond compliance, we deliver insights that strengthen financial reporting, improve operations, and support your broader business goals.
Understanding the financial audit process helps organizations prepare while minimizing disruption. Although each engagement differs by size, complexity, and industry, most audits follow a predictable sequence of planning, execution, and reporting.
Your audit journey begins with gaining a deep understanding of your organization and its operations. During this phase, you’ll work closely with your team to assess potential risks, review prior financial statements, and identify key transactions and internal controls. This step ensures that you have a full picture of your financial landscape before testing begins.
As part of preparation, you’ll gather essential documentation like accounting policies, organizational charts, and updates on major business developments that occurred during the audit period. You may find yourself organizing files, clarifying processes, and ensuring information is up to date. Establishing clear communication channels with auditors early helps keep everyone aligned and reduces stress later in the process.
Throughout this phase, you may experience a mix of discovery and reflection: uncovering gaps in your records, confirming strong internal controls, and clarifying areas that may need more attention. By investing time now to plan and prepare thoughtfully, you set the stage for a smoother, more efficient audit, giving you confidence and clarity as the engagement progresses.
How BPM supports you during this phase
This phase is where the audit really takes shape. You’ll see account balances examined, internal controls evaluated, and supporting documentation reviewed for key transactions. Testing is designed to focus on areas that carry the most risk, giving you a clear, detailed picture of your financial health and uncovering any gaps or inconsistencies that may need attention.
During this stage, your team will actively provide information, respond to questions, and clarify processes. You may find yourself reviewing reports, reconciling accounts, or walking auditors through complex transactions. Staying organized, responsive, and proactive helps the process run smoothly and keeps timelines on track.
As the work progresses, you’ll experience a mix of discovery and insight: confirming areas where controls are strong, identifying where processes can be strengthened, and understanding how day-to-day financial activities impact overall reporting. This hands-on collaboration helps ensure that every key aspect of your financial reporting is thoroughly reviewed while minimizing disruption to your team’s regular operations.
How BPM supports you during this phase:
In this final phase, you’ll receive the independent auditor’s report along with management communications that highlight key findings and recommendations. Beyond the formal opinion, you’ll have the chance to review observations on internal controls, process improvements, and other insights uncovered during the audit. This is the moment where the work of the previous phases comes together into a clear, actionable picture of your organization’s financial health.
You’ll also have the opportunity to discuss how these findings can strengthen reporting and operational processes. This may involve clarifying recommendations, prioritizing areas for improvement, or planning next steps with your team. By focusing on actionable takeaways, you can translate audit insights into practical improvements that support smarter decision-making and better control throughout the year.
During this phase, you may experience a mix of reflection and forward planning—reviewing what’s working well, identifying opportunities for efficiency, and considering strategies to address challenges proactively. By engaging fully with the findings, you turn the audit from a compliance exercise into a roadmap for stronger financial management and more informed business decisions.
How BPM supports you during this phase:
Different situations create the need for audited financial statements, each with its own timeline pressures, compliance requirements, and stakeholder expectations. Understanding your specific audit driver helps determine the scope, timing, and approach that will best serve your organization’s needs.
Banks and financial institutions often require audited statements for credit facilities, especially for larger loans or favorable terms. Regular audits provide confidence to lenders, streamline approval processes, and can reduce borrowing costs.
Investors expect audited financials to verify performance and assess reporting quality. Establishing audit relationships early helps create a track record, making future fundraising smoother and building investor confidence.
Certain industries and organizations face mandatory audits for regulatory oversight or public funding. Even when voluntary, audits strengthen governance, provide assurance to boards, and ensure adherence to compliance standards.
Regular audits help organizations maintain transaction-ready books, reduce due diligence delays, and support management during mergers, sales, or other strategic initiatives.
Organizations frequently encounter similar challenges during the audit process, particularly during their first audit or when working with a new audit firm. Being aware of these common issues and preparing in advance can make audits more efficient, reduce stress on your team, and support accurate financial reporting.
Documentation & Record Keeping
Ensure all transactions, contracts, and accounting judgments are supported by organized, accessible records. Implement retention policies and digital filing systems to streamline audits, reduce risk, and support accurate financial reporting. Well-maintained documentation makes audits smoother and strengthens overall operational consistency.
Internal Control Deficiencies
Identify and strengthen weak controls across areas like segregation of duties, approval processes, and financial close procedures. Audit findings can reveal opportunities to improve accuracy, prevent errors, and increase efficiency. Addressing control gaps demonstrates commitment to financial integrity and builds stakeholder confidence.
Timeline Management & Planning
Plan early, communicate deadlines clearly, and establish a detailed audit calendar to keep teams aligned and prepared. Anticipating audit timing, requirements, and potential challenges minimizes disruptions and prevents last-minute surprises. Consistent planning and communication ensure audits stay on schedule and proceed efficiently.
Industry-specific risks, regulations, and business models directly affect a financial audit scope and complexity. Knowing what’s unique to your industry helps ensure a smoother audit and more meaningful insights.
Auditing a tech company means untangling complex revenue rules, testing contracts, and reviewing controls to provide insights, stronger financial reporting, and confidence for stakeholders and future transactions.
Technology companies, particularly SaaS and semiconductor businesses, face complex revenue recognition requirements under ASC 606 that require careful evaluation of contract terms, performance obligations, and timing of revenue recognition. The audit process involves detailed testing of subscription revenue, software license agreements, and the systems used to track customer contracts and billing.
Rapidly growing technology companies often struggle with maintaining effective internal controls as they scale operations, hire new personnel, and implement new systems. The audit process helps identify control gaps while providing recommendations for strengthening financial reporting processes that can support continued growth and future financing or transaction activities.
closeBlockchain audits focus on secure asset custody, wallet management, and fair valuation of tokens, helping ensure accurate reporting, manage risk, and give stakeholders confidence in your digital assets.
Blockchain companies operate in an evolving regulatory environment where traditional audit approaches must adapt to new asset types and business models. The audit process requires specialized knowledge of digital asset custody, wallet security, and the unique challenges of auditing decentralized business models while ensuring appropriate financial reporting.
Digital asset valuations present ongoing challenges as companies must implement fair value methodologies for tokens and other blockchain-based assets. The audit process involves evaluating these valuation approaches while ensuring adequate disclosures about the risks and uncertainties associated with digital asset holdings.
closeFinancial services audits go beyond the numbers, examining compliance, capital requirements, AML controls, and cybersecurity to help organizations meet regulations while supporting innovation.
Financial services organizations face extensive regulatory oversight that creates additional audit considerations beyond standard financial statement audits. The audit process must address regulatory capital requirements, anti-money laundering controls, and cybersecurity frameworks while ensuring compliance with industry-specific accounting standards.
Fintech companies present unique challenges as they blend technology innovation with financial services regulation, requiring audit teams that understand both technological risks and financial services compliance requirements. The audit process helps these organizations maintain regulatory compliance while supporting their growth and innovation objectives.
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Auditing consumer products companies involves testing inventory, valuation methods, and controls while accounting for market fluctuations, seasonal trends, and promotions to ensure accurate financial reporting.
Consumer products companies face significant audit challenges related to inventory valuation, particularly for businesses with seasonal products, fashion merchandise, or other items subject to obsolescence. The audit process involves detailed testing of inventory counts, valuation methodologies, and the controls surrounding inventory management and pricing.
Rapid changes in consumer preferences and market conditions create additional audit considerations around inventory reserves, warranty obligations, and revenue recognition for promotional activities. The audit process helps companies develop appropriate accounting policies while ensuring financial reporting accurately reflects business performance.
closeWineries face audits that follow the full lifecycle of production, from vineyard harvest and aging inventory to regulatory compliance, ensuring financial reporting reflects both agricultural and operational realities.
Winery operations involve unique accounting challenges related to agricultural production, aging inventory, and compliance with federal and state regulations specific to alcohol production and distribution. The audit process requires understanding of specialized accounting standards for biological assets and the unique aspects of wine production cycles.
Federal TTB regulations and state licensing requirements create additional compliance considerations that impact both business operations and financial reporting. The audit process helps wineries maintain compliance with these regulatory requirements while ensuring appropriate financial reporting for their agricultural and manufacturing activities.
closeNonprofit audits combine specialized knowledge of fund accounting, program expense classification, and federal grant compliance to deliver assurance, protect donor trust, and support financial transparency.
Nonprofit organizations operate under unique accounting standards that require careful tracking of donor restrictions, fund balances, and program expenses. The audit process involves evaluating compliance with donor restrictions while ensuring proper classification of expenses between program activities and support functions.
Federal grant compliance creates additional audit requirements for nonprofits receiving government funding, including single audit procedures under the Uniform Guidance. The audit process helps nonprofit organizations maintain compliance with these requirements while strengthening financial stewardship and donor confidence.
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Brian Finnegan
Partner, Assurance
Assurance Practice Group Leader
Chair, BPM Board of Directors
James Lichau
Partner, Assurance
Financial Services Co-leader
Ryan Musser
Partner, Assurance
Consumer Business Industry Group Leader
Alan Alvarez
Partner, Assurance
Professional Services Co-leader
Jeff Dietrich
Partner, Assurance
Jeff Carrick
Partner, Assurance
Shannon Winter
Partner, Assurance
Nonprofit Co-leader
Daniel Figueredo
Partner, Advisory and Assurance
Nonprofit Co-leader
FinTech Leader
Kendall Kuhn
Partner, Assurance
Shree Kothari
Partner, Assurance
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