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How Do I Comply with Audit Procedures?

Compliance audits focus on the actual operation of the company, including business practices and processes.
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  • Written By: Nicole Long
  • Edited By: Allegra J. Lingo
  • Last Modified Date: 01 October 2014
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Businesses must ensure they do everything possible to comply with audit procedures. For compliance audits this includes being available to speak with auditors, provide access to contractual documents, and allow auditors to inspect various business processes. Those looking to comply with financial audits must provide access to accounting and financial data, contracts, and personnel files.

Audits are a way of reviewing a company’s practices and operations. They can be either compliance- or financial-based. Compliance audits focus on the actual operation of the company, including business practices and processes. A financial audit focuses instead on ensuring the company abides by accounting standards and financial regulations.

Complying with compliance audits begins with allowing auditors to have access to various officers and employees of the organization. This includes making sure those in charge, such as managers, supervisors, and company officers are available for interviews concerning business practices and processes. Compliance auditors may require access to employees at all levels to ensure processes are employed as reported. Access to employees will need to occur in private without interference from supervisors, managers, or other employees to ensure auditors receive accurate and truthful information.

Providing access to contractual documents is another way to comply with audit procedures. Contractual documents that should be available include those related to management responsibilities, ownership of the company, and any business procedures or processes. Another part of the compliance audit includes reviewing current practices and comparing them to contractual or documented business processes to help identify safety concerns.

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Financial audits require companies to provide auditors with access to all pertinent financial data. To comply with audit procedures, companies should be prepared to hand over documents related to taxes, balance statements, ledger entries, and payroll. Other documents necessary to complete a financial audit include bank statements, check registers, and a listing of unpaid sick and vacation time.

Contracts and other documentation related to the business will also be necessary to help comply with audit procedures. This can include rental and lease agreements as well as vendor contracts. Other documentation that will need to be provided to auditors includes a listing of board members, any resolutions, and minutes of the latest board meetings.

A wide variety of additional paperwork and documentation can also be requested during a financial audit. Those looking to comply with audit procedures should be ready and willing to produce personnel files, copies of prior audits, and legal bills. Auditors may also request copies of paid and unpaid vendor invoices or statements related to petty cash.

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