What Are Common Challenges in Financial Audits for Entrepreneurs?
Entrepreneurs often face several challenges during financial audits:
- Resource Constraints: Small businesses may lack the resources and expertise needed to prepare for an audit. - Record Keeping: Poor or inconsistent record-keeping can complicate the audit process. - Complex Transactions: Startups with complex financing structures or transactions may find it challenging to ensure everything is accurately documented. - Compliance Awareness: Entrepreneurs may not be fully aware of all the applicable financial reporting standards and regulations.