The most costly findings are the ones your current auditor isn't looking for.
Lease accounting deficiencies have doubled since ASC 842 took effect — yet 41% of mid-market manufacturers still carry operating lease misclassifications into their year-end close. For a company preparing its first SEC filing, that's not a footnote problem. That's a restatement waiting to happen.
Our pre-audit diagnostic runs 23 deficiency checkpoints across your balance sheet before fieldwork begins. We identify the exposure before it becomes the finding. Clients who complete our Audit Readiness Assessment reduce remediation time by an average of 14 weeks.
Four regulatory changes your next audit will test. Most firms notice two.
The gap between a clean opinion and a qualified one is rarely a catastrophic failure. It's the lease schedule nobody updated, the income tax footnote drafted before the ASU was effective, the SOC 2 report that expired during due diligence. Our regulatory tracker flags exposure 90 days before it becomes your auditor's finding.
Operating lease liabilities must appear on balance sheet. Many mid-market companies still carry off-balance-sheet exposure.
Enhanced rate reconciliation and disaggregated income taxes paid disclosures required. Early adoption permitted.
Updated criteria for availability and confidentiality principles affecting SaaS-adjacent portfolio companies.
Indirect cost rate changes and procurement thresholds revised. Single audit threshold unchanged at $750K.
What we found before regulators did.
Material Misstatement — Revenue Recognition
The company had been recognizing revenue at point of shipment under legacy policy. Under ASC 606, control transferred at customer acceptance — a 30-day lag. We identified $2.3M in prematurely recognized revenue during pre-audit fieldwork. Their prior auditor had passed the same schedule for three consecutive years.