Audit Planning: Best Practices for Pre-IPO Companies

Auditors are typically unwelcome guests in a company’s offices. They seem to scrutinize every number, question countless procedures, and disrupt the accounting department’s day-to-day routine. However, thinking that auditors are annoying is the wrong mentality to have. Auditors can be useful resources, and the company should embrace their presence. As knowledgeable outsiders with fresh sets of eyes, auditors help the company and its employees work more efficiently by recommending sound procedures that mitigate risk and prevent misstatements. More importantly, they certify to investors, analysts, and the general public that the company’s financial statements are accurate and reliable.