How to Request an Audit on a Business
When you request a business audit, you are hiring an independent CPA firm to look at the financial statements. The process begins by recognizing the targets, defining the scope of the project, and sending a concise request to qualified accounting firms.
What does it mean to request an audit on a business?
It means hiring an external audit firm to examine the financials and issue an official audit report. Business owners perform this action for a variety of reasons. You might want better internal reporting, or a lender might require audited statements. Investors look for audited numbers for added confidence — and buyers request them during a sale.
If the target is to report suspected tax fraud, you need a distinct route. You should file Form 3949-A directly with the IRS — rather than hiring a private audit firm.
Who can request an audit on a business?
This varies entirely with the organization as well as the purpose of the audit. For private companies, the request normally comes from the below parties:
- Owners or shareholders
- The board of directors or the audit committee
- A lender or bank
- An investor
- A buyer conducting due diligence
- A contracted partner requesting verified statements
In case of running a public company or planning to go public, check that the firm holds the correct registrations. You will need a PCAOB-registered firm for issuer audits.
How to request an audit on a business
The request should be simple and direct.
- State the reason for the audit — let the firm know if this is for a bank loan, investor updates, a business sale or internal rules.
- Define the period — tell the firm the fiscal year-end date and indicate if you want just one year reviewed or multiple years
- Name a point of contact — pick one person on your team to answer our questions, collect the documentation and manage scheduling
- Gather the basic data — prepare the trial balance, general ledger, bank reconciliations, past financial statements, debt agreements, and large contracts, as well as ownership records
What should go in your audit request?
The email or RFP needs to give the firm enough information to price the work and confirm if they are a match. A solid request list would contain the elements below:
- Legal business name
- Entity type & industry
- Fiscal year-end
- Reason for the audit
- Revenue size & number of locations
- Deadline for the fieldwork & final report
- Whether this is the first-time audit
- Main contact person's details
- Request for the firm's references, license status and peer review data
How do you choose the right audit firm?
Look at the license status and industry background alongside availability. Afterwards, compare their proposed schedule and team members as well as pricing. While price is important, it should not dictate the final decision alone.
Verify that the firm holds an active license & check their peer review status. You can use CPAverify, a public tool populated by state board data. AICPA peer reviews are also a recognized quality measure for audit firms.
Read the engagement letter thoroughly before signing. The letter should match the scope and schedule as well as reporting requirements you originally discussed.
Dimov Audit presents professional services
Dimov Audit supports US businesses kicking off their audit process without issues. If you require assistance, reach out to our team. We guide you from the first question all the way to a concrete, finalized audit plan.
