Stakeholders may request audits when companies are raising capital, bringing on private equity, expanding credit facilities, or entering serious M&A discussions. That is when expectations change.

In this conversation with Rawan Sakatan, CPA, Director at Weaver, we discuss why audits appear as companies scale and how investors, lenders, and buyers think about financial reporting.

(00:00) Introduction
(00:49) Topics covered: audits, diligence, and investor expectations
(02:26) Why growth-stage companies begin needing audits
(06:00) Are M&A-ready founders also audit-ready?
(08:09) What companies actually need in place to pass an audit
(09:13) The top three mistakes founders make before their first audit
(12:33) What expertise a finance team needs to support audit readiness

An audit is not the same as due diligence.

→ An audit looks backward and tests whether financial statements are fairly presented under GAAP.

→ Due diligence is broader. It evaluates risk, quality of earnings, working capital, and whether the business supports the valuation and deal assumptions.

→ A company can complete due diligence successfully and still not be ready for an audit, and the reverse can also happen.

Growth-stage companies often encounter challenges in areas such as accruals, revenue recognition, equity tracking, documentation, and internal controls.

Audit readiness is less about “perfection” and more about financial maturity.

If you’re scaling past the early stages or planning for capital or an exit, understanding this difference protects credibility and valuation.