. . .Then, you just may not be doing them the most efficient way you can, says CPE Link instructor, Larry Perry.

Making money on small audits can be challenging, Perry acknowledges, but it can be done. Small audits can make money today and be profitable over the long haul, as the small business client grows bigger. “There is a lot to turning a profit on small audits, but first you have to build a foundation for efficiency. You have to think holistically and prioritize efficiency from the start to finish,” says Perry.

Start with being selective about clients. Evaluate and accept only clients that are going concerns with high integrity and grow with them. “Eliminating messy clients goes a long way to toward increasing firm profits.”

Hire outstanding staff and train them well. Where efficiency matters, experience counts, so assign the right people to the engagement and supervise them appropriately.

Have a functioning quality control system in place. “For audits to be easy and profitable, all engagement personnel must know and comply with the QC and auditing standards that apply,” says Perry.

Design unique audit strategies for each client, using common sense and practical approaches.

And micro-manage for efficiency. “Take advantage of EVERY opportunity to save engagement time—even if it’s only minutes,” says Perry.

Small audits can be easy and profitable—with the right know-how.

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