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Thread: Audited Books

  1. #1
    Join Date
    Mar 2004
    Posts
    550

    Audited Books

    I'm just signing off on our company's annual report (and taking a nice dividend payout ) and I was thinking about my options regarding having the company's books audited.

    In our jurisdiction, auditing is not required for a company of our size. However, I know that if I ever want to sell the company in the future, a buyer will request to see a copy of the company's audited books to be sure things are in order. I think typically they will ask to see the last 3 years of audited books.

    Generally in our jurisdiction, when auditing is required, then the auditor's statement is attached as a page in the company's annual report.

    So my question is this: If I'm not having the auditing done as a legal requirements, can I just delay the audit? Or should I have it done now so it's filed with the annual report?

    Since all companies here need to file their annual report with authorities over the next 2 months, then all auditors are very busy. I was thinking of engaging an auditor a few months from now, once they are less busy and might even offer a discount if it's the slow season. The disadvantage of doing this is that the auditor's statement will not be a part of the annual report that is filed with the authorities. Is there a big drawback to this? Remember the main purpose for having the audit done is so a potential buyer will have this information readily available when they do due diligence. However, I am not currently trying to sell the company.

  2. #2
    Our experience is that for the sale of your company you can have the audit done at any time up to when you put it on the market. I'd quiz your auditor to find out if it would be cheaper to have them do two years at the same time versus doing them each year. Doing it out of "season" should help hold down costs as well. Audits can take a little time to do so don't put it off too long if you want to have one done before putting it on the market

    I hope this helps.
    Frank Stiff
    Cheval Capital, Inc.
    www.chevalcap.com

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