Accounting

What You Need for a Successful Financial Statement Audit

Jared Hardy, Audit Shareholder

March 20, 2016

What You Need for a Successful Financial Statement Audit

Tedious, overwhelming, and taxing. Audits come with a reputation that hardly leaves a good feeling yet having a successful audit starts with abandoning the stigma. As with anything else that can tow the line between disappointment and success, audits are completely reliant on your outlook on the matter. In short, you need perspective and preparation.

Pave the Way with Preparation for Your Audit

Assigned with the task to meticulously examine facts and figures of your business, auditors need to know the ins-and-outs of your business to appropriately prepare for your financial statement audit. Typically, an auditor will schedule a planning day to consult on overall plan for the audit and to discuss what has been going on with the business. As the Audit Director, I recommend scheduling your planning day prior year end, so that way you can establish a timeline for the audit and start collecting information for the audit. To make the planning day run smoothly, it’s best to come prepared. Keep in mind it’s helpful for your auditor to understand how certain processes work and what’s risky for your business. Allocating time and/or appointing someone, like the chief financial officer or human resource personnel, to ensure your auditor has a thorough understanding of these things are significantly helpful in preparation. Additionally, any documents that had a financial impact, good or bad, on your business in the last year, will come in handy in guiding your auditor. Gather documents tied to new leases, loans, clients, contracts, etc., and compile them for your auditor. This saves rush and fuss of collecting information on a tight deadline.

Pick a Positive Perception of Your Audit

It’s been said thousands, maybe even millions, of times before — attitude is everything. As auditors, we’re trying to help your business do better, and make decisions that alleviate financial stress. Informing and reminding your team that the auditor is there to perform a financial statement audit as opposed to an IRS audit can help defeat some of those preconceived negative opinions. Taking it a step further, explain how a financial statement audit will improve the business. This positive outlook will make the process feel far less strenuous and daunting. Auditors understand your day-to-day tasks are a priority for you and your business, but being patient and setting aside time to answer the auditors questions will keep you informed on the progress of the audit as well as keep it moving toward the finish line. It’s also important to know there will be follow up when we leave your office, so it could be a few weeks before the audit is completely done. All in all, going through an audit is much like going to the dentist. The anticipation alone can make you uncomfortable. But once the dentist, an expert, confirms that you're cavity-free (or removes it so that you're cavity-free), you're able to rest easy. Just remember, the auditor is there to boost the financial well-being of your business rather than criminalize your financial shortcomings.

Analytical, Strategic, Significance, Futuristic, Relator

Jared Hardy

Audit Shareholder

Jared Hardy, Audit Shareholder, began his career in 2005. He has developed comprehensive expertise in financial assurance and business consulting, playing a pivotal role in the firm's audit methodology and technological infrastructure.

Specializing in audits, reviews, and compilations, Jared serves clients in the agribusiness, construction, manufacturing, and nonprofit industries. He provides high-quality financial reporting and consulting services, helping clients achieve their goals through strategic insights and practical solutions. Jared values collaborating closely with clients to address challenges and support informed business decisions.

At Lutz, Jared plays his position through his strategic oversight of audit technology and processes. His ability to combine analytical precision with future-focused thinking has helped advance the firm's audit capabilities while fostering strong client relationships.

Jared, an avid Husker fan, lives in Grand Island, NE, with his wife Kylee and their sons Jake and Grant. Outside the office, he watches and coaches his kids in football, basketball, wrestling, track, and baseball.

Services

Industries

News & Insights

Estate Planning Guide

Services

Resources

How To Avoid Being Negligent When It Comes To Risk

Business Insights

Comparing Business Valuation Methods: Which is Right for You?

Services

Resources

NEWS & INSIGHTS

Financial Market Updates

Services

Resources

Factors to Consider When Selling a C Corporation

Business Insights

5 Key Items to Review During Financial Due Diligence

Services

Candidate Resources

News & Insights

Benefits of Outsourcing Your Human Resources Function

Services

Resources

Introducing Data Analytics into Your Business

Business Insights

Pella Client Testimonial

Business Insights

Webinars & Events

Financial Market

Resources

Business Insights

About

What You Need for a Successful Financial Statement Audit

Pave the Way with Preparation for Your Audit

Pick a Positive Perception of Your Audit

Jared Hardy

Recent News & Insights

Electing Out of the Complex Variable Interest Entity (VIE) Guidance

What Your Business Needs To Know About Sales Tax

What are the Pros and Cons of Filing a Business Tax Extension?

How to Increase the Value of Your Business

Let’s get you where you want to go.