Updated: Aug 23
Now your surety is requesting Audited financial statements. The first thing I would do if I were you is double check if they need Audited financial statements! Sometimes the answer is NO, they don't! This could save you thousands and still make everyone happy! If they still insist on undergoing an Audit, you should expect more interaction with your CPA during the engagement.
On top of the inquiries and analytics that are typically performed during a Review, you'll get even more inquiries and numerous requests for support. Sounds like fun doesn't it?! By that I mean, a CPA Auditing your financial statements is required to substantiate balances through various procedures including vouching transactions to underlying support (invoices, payments, receipts, etc.). It's likely that your CPA will send out confirmations with your assistance as well, to confirm accounts receivable, accounts payable, debt, and cash balances.
My advice is to ask your CPA what documents they'll be needing upfront before the start of the engagement. This should make things run smoother. I highly suspect they will request more support as the Audit progresses.
Audit hours vary depending on the size of your construction company and your CPA's firm. I would expect at least 100 hours or more to start with.