The BizBuySell Small Business Community

  • Get Expert Advice

  •  • Find Local Service Professionals

  •  • Share Your Experiences

Thoughts on hiring an auditor to do a full audit on a business' financial statements before purching the biz?

Say business is around 800k to purchase, would hiring an auditor be recommended? Is this common practice? Any rough ideas on what an audit would cost?
Thanks.

No User Photo

Answer This Question

max 5000 characters

Web Reference (optional)

e.g., "www.mywebsite.com"

Review Community Guidelines

Help keep our Community clean and on topic. The BizBuySell Community is a place where you can discuss your questions, concerns and knowledge with others you can trust. It is not OK to use this forum to solicit others for personal or financial gain, or to rant about personal issues. It's all in the guidelines.

Submit Your Answer
Answers (3)
No User Photo
The BAF Group LLC
MD

You can check Tax Returns, Balance Sheets, theh cross check them against Invoices to Suppliers and from Clients - those are your big issues. Your accountant can do that with and for you, without a full audit.

Sep 23, 2009
No User Photo

Thanks Don. Business is a distribution company (in theory).
What are other ideas other than a full audit? Thanks again.

Sep 23, 2009
No User Photo
The BAF Group LLC
MD

A CPA would be the better one to answer the cost question for you. However, for a business of that size, it is virtually unheard of to have a full audit performed, principally because of the cost. And how much would you really learn? Not that audits are not worthwhile excersises for some businesses; but for a "small business" like that?

Not knowing what kind of business you are looking to buy, it is difficult to say much more. But I think there are faster - a full audit can take months to schedule and execute - and more cost effective ways of going.

Sep 23, 2009

Start a Discussion