finance:audit-support

Support SOX 404 compliance and control testing.

Helps finance teams prepare for audits by documenting internal controls, identifying control gaps, drafting process narratives, and preparing responses to auditor requests. Most useful when an organisation is approaching its first external audit, implementing SOX 404 requirements, or supporting ongoing control documentation.

EverClean example

finance:audit-support

Context: EverClean is a pre-revenue hardware startup that has just closed a 
         $500,000 convertible note and is preparing for a Series A in 12 months. 
         Our Series A lead has indicated they will require audited financials. 
         This will be our first external audit. We have no formal internal 
         controls documentation.

Focus areas for audit readiness:
- Cash disbursements (only 2 founders currently approve payments)
- Inventory / prototype asset tracking (3 units at showrooms, no formal system)
- Capitalization policy (when does R&D spend become a capitalizable asset?)
- Revenue recognition (consignment units shipped but not yet invoiced)
- Convertible note documentation and disclosure

Request: Identify the highest-risk control gaps an auditor will focus on 
         and recommend the minimum controls we should implement in the 
         next 6 months to be audit-ready.

What you’ll get: A prioritised control gap assessment — the 3–5 areas an external auditor will scrutinise most given EverClean’s profile, the specific risk each gap creates, and a practical recommendation for the minimum control (approval threshold, documentation requirement, policy) that addresses it at a startup scale without over-engineering the process.

Useful follow-up prompts

• “Draft a one-page cash disbursement policy appropriate for a 2-person startup — approval thresholds, documentation required, segregation of duties workaround.”
• “What does an auditor mean by a ‘management override risk’ and do we have one with only 2 founders approving payments?”
• “Write a capitalisation policy for R&D and tooling costs that will hold up to GAAP scrutiny at Series A.”