Most audit qualifications and delays in Nepali SMEs trace back to a small set of recurring, fixable issues — catching them before audit season saves both time and audit fees.
Incomplete Bank Reconciliations
Unreconciled differences between bank statements and internal cash books are one of the most common findings — reconcile monthly, not just at year-end.
Missing Supporting Documentation
Transactions recorded without invoices, receipts, or contracts to back them up get flagged or, in worse cases, disallowed as deductible expenses entirely.
Related-Party Transactions Not Disclosed
Payments to directors, promoters, or their relatives that aren't properly documented and disclosed raise governance red flags and can trigger deeper audit scrutiny.
Inventory Valuation Inconsistencies
Businesses that don't apply a consistent inventory valuation method year over year, or that never conduct a physical stock count, frequently receive qualified opinions on this specific line item.
Fixed Asset Registers Not Maintained
Assets on the books that can't be matched to a physical register — or depreciation calculated inconsistently — is a very common, entirely preventable issue.
Maintaining audit-ready books year-round, not just before filing season, prevents nearly all of these. Company Sathi's bookkeeping team keeps your records audit-ready continuously.
