The #1 Reason Audits Take Longer Than They Should (And How to Fix It)

Most government audits don’t fall behind because of one big issue.

They fall behind because of a dozen small ones:

• A missing bank reconciliation

• An unclear trial balance

• A note disclosure that hasn’t been updated

• A follow-up question that goes unanswered for a week

These delays add up—and suddenly your audit timeline has doubled.

But underneath all of that?
There’s one root cause that comes up in almost every delayed audit:

 

Missing or incomplete documentation.

The good news? It’s fixable.

Let’s walk through why it’s such a common issue—and what you can do to stay on track this year.

Why Missing Documentation Slows Everything Down

Audits are built on support. Every balance, adjustment, or disclosure needs to be verifiable.
When support is missing, unclear, or inconsistent, your auditor can’t move forward.

And since most audits happen on tight schedules, even small holdups can create a domino effect:

• One delay affects review

• Which affects report drafts

• Which affects filing deadlines

What’s worse? The later in the process a gap is discovered, the harder it is to fix without stress or rework.

Common Gaps That Delay Audits

Here are the issues auditors see most often:

🔹 Bank Reconciliations:

Recons don’t tie to the trial balance, or supporting statements are missing.

🔹 Capital Assets:

Schedules are outdated, purchases weren’t tracked during the year, or disposals aren’t documented.

🔹 Federal Programs:

Grant documentation is incomplete, or SEFA schedules are missing key identifiers (CFDA/ALN numbers, expenditures by program).

🔹 Note Disclosures:

Prior-year notes are copied forward without updates or new activity added.

🔹 Adjusting Journal Entries:

Entries are made without documentation—or not made at all.

These aren’t errors—they’re process gaps. And they can be closed with a few simple habits.

How to Fix It: Build Documentation Into Your Monthly Workflow

You don’t need to overhaul your whole system to improve audit readiness.
You just need to make sure the right support is saved consistently and accessibly.

Try This:

• Reconcile monthly (not just at year-end) and save backup in a shared audit folder.

• Track capital asset activity in real time—don’t wait until June to recreate purchases.

• Maintain a grant log with award letters, drawdown documentation, and expense support.

• Update note disclosure tables throughout the year (like debt balances and capital leases).

• Save adjusting entries with explanations and approval documentation.

When these habits are built into your regular workflow, audit prep becomes a collection process—not a clean-up project.

Bonus Tip: Communicate Early and Often

If you’re not sure what the auditor needs, or something isn’t ready, say so early.
Most delays aren’t caused by problems—they’re caused by surprises.

Start the audit with:

• A quick “what changed this year” memo

• A shared checklist to track what’s done, in progress, and missing

• A short weekly touchpoint with your auditor

The more aligned you are from the start, the less likely you are to run into deadline stress later.

Better Documentation = Faster Audits

You don’t need to work harder to speed up your audit.
You just need to make sure your documentation is complete, clear, and organized—before the audit even begins.

Because when your support is ready, your auditor can move faster.
And when the audit moves faster, you get back to the work that matters most.