To prepare, we first have a planning meeting with the individuals that will handle the audit. We'll walk through the balance sheet and profit & loss statements to determine which areas to focus on and discuss any other concerns. Once we get into the details, we'll help reconcile the major accounts and adequately prepare any schedules or work papers auditors generally request. Everything needed by the auditors is then indexed and made presentable either on hard and/or soft copy, depending on the auditor's preference.

Audit preparation is a unique and forward-thinking service designed to mitigate risk and increase cost savings. As you are more and more prepared for your audit, the auditors will take away less of your time. And as the old adage goes, time does equal money. That is, money you spend on the audit and money you spend having your team work overtime.

A recent hot-button issue for audited companies is the Statement on Auditing Standards (SAS) No. 112: communication of internal control related matters identified in an audit. The most common effect of SAS No. 112 results in a significant deficiency or worse, a material weakness. This language will be included in the auditor's report and can often be avoided by demonstrating to the auditors that management has the ability to detect material misstatements and prepare their own financial statements. The most effective way to demonstrate this ability is to be organized and prepared for whatever may come your way.

D&B Consulting wants to help you avoid the negative connotation associated with SAS No. 112. We will help you prepare your financial statements in accordance with Generally Accepted Accounting Principles (GAAP) and present them to the auditors at the beginning of the audit. In our experience, this helps to avoid a SAS No. 112 letter a great majority of the time.