Practical resources for
your business.

Checklists and guidance designed to help your business stay audit-ready and informed. New resources added periodically.

Onboarding Process
Audit Readiness
Common Audit Issues
AsuraTrust CPAs — Resources

Onboarding Process

From initial contact to the issuance of deliverables.
Step 01 / 05 Phase

Initial Conversation

We start with a conversation to understand your business, industry, and specific assurance needs. This helps us determine the right engagement for your company and obtain the relevant information needed to accurately prepare a proposal.

What This Includes
Discovery call Scope alignment Requirements outline

Audit Readiness

Practical steps to take before fieldwork begins.
Tip 01 / 05

Year-end Closing of the Books

All account reconciliations, schedules, accruals, and accounting estimates should be completed and finalized prior to fieldwork. Make sure all reconciliations and detail schedules agree to the general ledger. Confirm all prior year audit entries have been recorded and prepare a final year-end trial balance.

Common Audit Issues

Frequent areas where private-company audits hit friction.

ASC 606

PY Audit Entries Not Recorded

Year-end timing mismatches

Errors at year-end are common when sales teams push transactions to hit targets — shipments may not match the timing of performance obligations under ASC 606.

ASC 842

Equity Does Not Rollforward

Embedded leases hidden in contracts

Lease classification continues to trip up private companies, particularly embedded leases inside service contracts and equipment arrangements.

Policy

Incorrect Reconciliations or Schedules

Inconsistent treatment, no written policy

Decisions for software, leasehold improvements, and smaller fixed assets often lack a documented written policy, leading to inconsistent treatment.

ASC 850

Insufficient IC Documentation

Disclosed late, or not at all

Disclosed late — or not at all. Common with owner-occupied real estate, affiliated entities, and family members on payroll.

ASC 205-40

Related Party Transactions

Missed covenants in loan analysis

Indicators are frequently overlooked in loan covenant analysis. A missed covenant can shift debt from long-term to current and trigger substantial doubt disclosures.

ASC 205-40

Lack of Supporting Documentation

Missed covenants in loan analysis

Indicators are frequently overlooked in loan covenant analysis. A missed covenant can shift debt from long-term to current and trigger substantial doubt disclosures.

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