Top 5 Mistakes Businesses Make Before an Audit

Audits don’t have to be scary—but they do require preparation. Unfortunately, many businesses create more stress for themselves by making preventable mistakes before the audit even begins. At MCAC, we’ve seen these issues firsthand and know how costly they can be.

Here are five of the most common mistakes businesses make before an audit—and how you can avoid them.

1️⃣ Waiting Until the Last Minute

When you delay audit preparation, you limit your ability to correct issues or clarify discrepancies. Start reviewing your records as soon as you know an audit is coming—or better yet, stay prepared year-round.

2️⃣ Missing or Incomplete Documentation

Receipts, invoices, contracts—auditors will want proof. Failing to maintain clear documentation for key transactions can lead to penalties, delays, or even suspicion of wrongdoing.

3️⃣ Inconsistent Bookkeeping Practices

If your books show irregular entries, skipped reconciliations, or fluctuating classifications, you’re waving a red flag. Consistency in your records reflects professionalism and control.

4️⃣ Not Reviewing Internal Controls

Auditors want to see how your business prevents fraud or error. Lack of documented

procedures—or no oversight—can damage your credibility even if your books are accurate.

5️⃣ Failing to Ask for Help

One of the biggest mistakes is trying to go it alone. A CPA can help you spot red flags and organize your materials in a way that aligns with audit expectations. Getting professional help often saves time and money.

Avoiding these common pitfalls can make your next audit far less stressful—and far more successful. At MCAC, we help Alaska businesses prepare every step of the way.

📞 Want to audit-proof your books? Let’s talk about your strategy.