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Audit prep insights

Top 5 Red Flags That Could Delay or Complicate Your Audit

Don’t Let Simple Mistakes Trigger Bigger Problems

When it comes to audits, even small oversights can raise big questions. Auditors are trained to spot inconsistencies — and if they find red flags, your audit can quickly shift from routine to complicated.

At SG&CO, we help South African SMEs avoid the common pitfalls that stall the process and lead to unnecessary stress. Here are the top five red flags you’ll want to catch early.

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1

Unreconciled Bank Accounts

If your bank statements don’t match your accounting records, auditors will notice. They’ll request explanations or supporting documents — and until that’s resolved, nothing moves forward.

Reconcile monthly. Don’t wait until audit season.

2

Missing or Incomplete Supporting Documents

Every figure in your financials should be backed by a document — invoices, slips, contracts, or logs. If these are missing or disorganised, expect delays.

We help our clients store and label documents correctly throughout the year, not just at year-end.

3

Inconsistent Payroll Records

If your payroll submissions to SARS don’t align with your internal records, it’s a red flag. Auditors will dig deeper into PAYE, UIF, and staff deductions.

Use payroll systems that integrate with SARS and are reviewed by your accountant.

4

Large or Unusual Transactions Without Explanation

If your financials show spikes in income or expenses without context — like unusually large client payments or once-off supplier costs — auditors may raise concerns.

SG&CO helps you flag and explain these upfront, before the audit begins.

5

Late or Incorrect SARS Submissions

SARS records are often cross-checked during audits. If your tax returns were filed late, corrected, or contain mismatched figures, auditors will want to know why.

File accurately and on time. SG&CO manages tax compliance for our SME clients so nothing slips through the cracks.

Audits don’t have to be complicated — unless the red flags pile up.

At SG&CO, we don’t just react to audits. We prepare your business to handle them with ease. From accurate records to pre-audit reviews, our team is here to keep you audit-ready and confident all year long.

Get in touch with SG&CO today.

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