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ADDITIONAL INFORMATION
AUDIT READINESS BEST PRACTICES FOR FINANCIAL FIRMS
Audit readiness prepares financial firms for regulatory exams and third-party reviews. TAFT assesses documentation and controls to ensure alignment, minimizing disruptions.
WHY AUDIT READINESS MATTERS
Regulators like SEC and FINRA conduct exams to verify compliance; preparedness avoids fines and builds trust.
BEST PRACTICES
Documentation: Maintain comprehensive records of policies and transactions.
Mock Audits: Simulate reviews to identify weaknesses.
Remediation: Develop action plans for findings.
Control Testing: Evaluate effectiveness annually.
Practice
Benefit
Method
Mock Audits
Proactive fixes
Internal simulations
Remediation
Swift resolution
Project tracking
PREPARATION STEPS
Review risk posture.
Gather evidence.
Train teams.
Engage liaisons.
Follow up post-audit.
In 2025, focus on AI in audits for efficiency.
FAQS
What triggers an audit?
Routine or risk-based by regulators.
How long to prepare?
3-6 months ideally.
