Who does the auditing for LLCs? When is it mandatory? What are the cases that will require LLCs to be audited?
There are two primary sources to consult. The operating agreement which is the legal document governing the conduct of the limited liability company (LLC) and the state law (statute) governing LLCs in your state. In many operating agreements there are specific provisions governing accounting, auditing and related matters. If the particular business is governed by a regulatory body, the rules and regulations of that regulatory (licensing) body may require audits at specified events or interval.
Depending on the circumstances, you should consult with a Certified Public Accountant (CPA) and determine if a different standard of accounting services that is lest costly might suffice. For example, a "review", "compilation" or other comprehensive basis of accounting might be used. Some operating agreements even specify the level of accounting service as well as the methodologies and basis for accounting to all be addressed.
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