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How to best prepare for an audit post-acquisition

E78 Partners

Audits are an essential part of ensuring that a company’s financial statements are accurate and compliant with accounting standards. Focus on Key Audit Areas: Concentrate on significant audit areas such as purchase price accounting, transaction costs, fair market value of assets, and complex equity or compensation structures.

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What is Quality of Earnings?

CFO Share

Audited financial statements focus on compliance with GAAP accounting standards, whereas Quality of Earnings reports focus on the company’s earnings history and potential. Sales concentrations and/or backlog risk. Reviews of account reconciliations, account aging, and composition.