Surviving Your First Financial Audit (Pre-IPO or PE-Acquired)
Written by Nirmala Murugesan
Curated by Rubric Financial
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When You'll Be Audited
- Pre-IPO: typically required for last 2-3 fiscal years of historical financials. Audit is non-negotiable for SEC registration.
- PE-acquired: most PE buyers require audited financials as a closing condition. Often includes a Quality of Earnings (QoE) review on top of audit.
- Series C+: some lead investors require audits as a board-level governance requirement. Less universal than QoE.
- Bank lending: large facilities ($10M+ revolvers, asset-based lending) often require audited financials.
- M&A buyer requirements: strategic acquirers want audited financials especially for deals >$50M.
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About the author
Nirmala MurugesanCA, CPAPartner, Accounting
CA and CPA with 20+ years across U.S. GAAP, IFRS, and cross-border entity accounting. Leads accounting and controllership at StartupCFO: clean close, audit-ready books, and multi-entity structures for venture-backed startups.
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