How to Use Audit Findings to Strengthen Financial Controls 

For many organizations, the conclusion of a financial audit is a moment of reckoning. The report not only reveals compliance gaps but often shines a light on weak financial controls that could expose the business to risk.  

Combing through the findings can feel overwhelming, particularly for lower to middle-market organizations with limited resources. However, these findings also present a golden opportunity to refine processes, implement stronger financial controls, and protect your business from future vulnerabilities.  

As experts in helping lower to middle-market organizations ensure audit readiness and strengthen internal controls, we’ve outlined practical tips and steps to transform an audit from an unwelcome obligation into a strategic advantage. 

What are the Most Common Financial Audit Findings? 

Financial audits often unearth recurring issues that indicate a need for better financial oversight, such as weak internal controls, non-compliance with regulations, or errors in financial reporting. Oversight gaps can lead to inefficiencies, increase the risk of fraud, and cause challenges when maintaining compliance with industry standards. 

Addressing these findings requires organizations to assess their current processes, invest in the right technology, and ensure their teams are trained to uphold best practices. By identifying and resolving these common issues – oftentimes, alongside a trusted partner for guidance – companies can improve financial transparency, reduce risks, and strengthen stakeholder confidence. 

Below are some of the most common issues organizations often come across. 

Common financial audit findings and issues: 

• Inadequate Segregation of Duties. Many organizations fail to separate responsibilities adequately, which can lead to errors or fraud. For example, allowing the same person to process invoices and approve payments creates a clear conflict. 

• Insufficient documentation. Missing or incomplete records are a frequent issue. Whether it’s unclear expense receipts or poorly maintained ledgers, insufficient documentation undermines accountability. 

• Weak IT controls. With financial data increasingly housed in digital systems, outdated software, lax user access protocols, and insufficient cybersecurity measures are often flagged. 

• Revenue recognition errors. Missteps in recognizing revenue — whether premature or delayed — are a common stumbling block, particularly for organizations with complex contracts. 

• Reconciliations are not performed timely. Delayed reconciliations, especially for key accounts like cash or accounts receivable, can snowball into significant discrepancies. 

By addressing identified issues methodically, organizations can create more robust financial controls and systems that safeguard them from risk.  

For more information about the different types of issues that can arise during a financial audit, head to our blog: Financial Statement Audit Preparation Challenges & Tips to Avoid.

How to Use Financial Audit Findings to Strengthen Controls and Establish Operational Efficiency

1. Prioritize risk areas 

Start by categorizing audit findings based on their potential impact to determine where to focus your efforts. High-risk issues, such as segregation of duties or cybersecurity vulnerabilities, should be addressed first to minimize the chance of significant financial or operational disruptions. 

2. Develop an action plan 

Create a structured roadmap that outlines specific steps, assigns ownership, and establishes timelines for addressing audit findings. For example, if weak IT controls are identified, the plan might include updating software, revising user permissions, and conducting targeted staff training to strengthen security. 

3. Invest in technology 

Leverage modern financial tools, such as NetSuite ERP, to streamline processes and enhance transparency. Systems with built-in compliance features can reduce human error, automate repetitive tasks, and improve overall audit readiness, making the organization more efficient and resilient. 

4. Refine processes 

Audit findings often highlight inefficiencies that can be opportunities for improvement. For instance, if late reconciliations are flagged, implement a monthly close checklist with clear deadlines and accountability measures to ensure timeliness and accuracy in reporting. 

5. Train your team 

Educate employees on compliance standards and their critical role in maintaining strong controls. Regular training sessions ensure the team stays aligned with best practices and fosters a culture of accountability, reducing the risk of repeated findings in future audits. 

How Consultants Help Companies Understand and Utilize Post-Audit Findings to Strengthen Financial Controls 

While internal teams may have the best intentions, they may lack the expertise or capacity to address audit findings comprehensively. Here’s where financial consultants make a difference: 

• Objective Assessment: External experts bring a fresh perspective, ensuring issues are addressed without internal biases. They can also benchmark findings against industry standards to provide valuable insights, identify gaps, and recommend best practices that drive continuous improvement and strategic decision-making. 

• Tailored Solutions: Consultants analyze your financial audit report and craft strategies that align with your organization’s unique needs. For example, they can recommend process improvements or implement tailored NetSuite solutions to address control weaknesses. 

• Efficiency Gains: With a consultant’s guidance, organizations can implement changes faster and more effectively.  

• Regulatory Expertise: Navigating ever-changing compliance requirements is challenging. Consultants keep you ahead of new regulations, reducing the risk of future findings. 

Audit Preparation: Key Considerations for First-Time Audits 

Final Thoughts on How to Use Audit Findings to Strengthen Financial Controls 

Audit findings are more just than a list of issues — they’re a roadmap to stronger financial controls and a more secure organization. By addressing these findings head-on and leveraging expert guidance, companies can safeguard their operations, improve transparency, and position themselves for sustainable growth.