Why are financial audits important? One of our values at Prairie State is accountability; we can only uphold this value if we maintain and report accurate records. Financial audits provide evidence that our records are valid.
As with many companies, Prairie State is required to have a public accounting firm conduct an annual financial audit. Interim audit work is performed in October, and a full audit is performed after the end of each year. To aid in this process, our finance team prepares financial statements and footnotes to present to the audit firm.
The fieldwork that these audits cover includes financial reporting, cash management, inventory, disbursements, accounts payable, payroll, and internal controls. The auditors also meet with senior leadership to inquire about the risks of the company. Finally, the audit team offers their opinion along with a collective audit report, to be issued to our owners. We’re proud to say Prairie State has had a clean audit opinion every year!