What exactly is an audit? The dictionary says it is a thorough examination or check – an in-depth examination of every part of a process. That applies whether you’re talking about accounting audits or workers compensation audits. You usually hear the term in relation to business. Basically, it means going over everything to do with whatever part of the business that is subject to the audit.
Should you be worried about a workers compensation audit? Well, the truth of the matter is you should only be worried about an audit if you haven’t been straightforward in your work practices as it is now a felony to intentionally mislead or misrepresent your risk to an insurance company. However, many people get worried about audits simply because they’ve not kept paperwork up to date – which can happen due to time pressures. In that case, facing an audit means scrambling around trying to get things in order that should really have been done as part of normal business practice.
As long as you maintain your paperwork, and you aren’t involved in anything you shouldn’t be, an audit need not be a stressful experience. You should have accurate records of all your financial income and expenses for an accounting audit. For workers compensation audits you need to have employee payroll records up to date. For stock audits, your picking lists, order forms and invoicing will be required. The more up to date you are, the less stressful the audit should be – and the less time the auditor will need to spend on the examination!
