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There will be more expenses connected with audits.
Audit firms may not perform non-audit services. There are eight categories of services that are specifically forbidden.
oBookkeeping
oFinancial system design and/or implementation
oActuarial services
oHuman resources or management services
oValuation
oInternal audit
oInvestment advice or services
oLegal services
oAdditionally, there s the kicker Any other service that the Board determines is impermissible.
Auditors tend to approve of companies who use their financial statements as tools to manage their businesses, rather than as unrelated propaganda for external users. If your accounts receivable/accounts payable ledgers are clean and up-to-date, and tie to the general ledger, and you can provide clear, transparent schedules for any questions the auditor might have, chances are you will have a clean, easy audit that will be a pleasure for both you and the auditor.
For more information see:
http://www.watters-cpa.com

About the Author

I graduated from Angelo State University in May of 1997 with an MBA in Accounting. I took and passed the CPA exam on the first try and have been working as a consulting CPA ever since.
I have worked in a variety of industries from communications and electric utilities to construction and real estate.

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Technorati Tags: Chicago Real Estate, Real estate news

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