SMALL BUSINESS AUDIT CHECKLIST
Copyright © Daniel Cullinane CPA.
Daniel Cullinane CPA
25 Plaza 5 25th fl Jersey City NJ phone 732-516-1648 fax 732-516-9778
2500 Plaza 5 25th fl Jersey City NJ 07311 phone 732-516-1648 fax 732-516-9778
Starting and operating a small business brings with it a responsibility to continually evaluate your business through performance, management and financial audits. Audits help small business owners search out problems, evaluate performance and keep all aspects of the business in line with goals, plans and initiatives.
Conducting a thorough small business audit requires an accurate assessment of company personnel and procedures. A management audit focuses on verifying basic business tools are in place, such as a mission statement and annual budget. Evaluate each department and ensure supervisors understand and demonstrate authority, all personnel receive appropriate training and accurate job descriptions exist for each position. Ensure a policy manual and a method for evaluating employee performance exists. Other things to check include the handling of expenditures and an evaluation of the plans in place to increase sales.
Auditing the operations of your small business will require uncovering details related to processes, such as production, sales and marketing. Evaluate supplier relationships, including the availability of alternatives, in case the need arises. Keep an eye on inventory control procedures and audits. Check production equipment to ensure maintenance is up to date. Inspect your small business to ensure environmental programs and safety protocols receive the appropriate amount of attention. Focus on how well your business meets customer needs, develops a target market and keeps up with technological advances.
The financial well-being of a company rests on the owner’s ability to keep track of important financial documents, statements and happenings in the business. Conducting a financial audit will verify the business uses a proper accounting system, prepares accurate and detailed financial statements, reconciles bank statements and pays taxes on time. In addition, a financial audit focuses on how your small business extends credit, collects on current and delinquent accounts and prepares invoices. Financial oversight and investigation should include verifying the business operates with an effective and accurate payroll system, pays employees on time, and follows laws and regulations related to payroll deductions.