When you might need an audit
(or review)
Many organizations are asked for “audited financials” without a clear explanation of what that means, why the request is being made, or what level of independent financial reporting is actually required.
In practice, the need for an audit, review, or other form of independent financial reporting usually arises because someone outside your organization — a funder, lender, investor, regulator, board, or partner — wants independent assurance over your financial information.
This page is designed to help you quickly identify which situations and sectors commonly trigger audit or review requirements, and to point you to more detailed guidance based on your type of organization.
Start Here: Which Best Describes Your Situation?
Each of the snippets and "learn more" links below takes you to a detailed sector page which explains:
Non Profit Organizations
If you receive grants or donations, operate under a board, or have been asked for audited or reviewed financial statements by funders, denominational bodies, or lenders, start here.
Financial Services and Investment
If you manage investor capital, operate a fund or SPV, run a fintech or lending platform, or have been asked for audited financials by investors, administrators, custodians, or banks, start here.**
Health Care and Human Services
If you operate clinics, treatment programs, or service organizations with third-party reimbursement or government funding, start here.
Construction, Real Estate and Development
If you manage projects, developments, or properties and lenders, bonding companies, or partners have asked for audited financial statements, start here.
Technology, Digital Platforms & IP-Driven Businesses
If you operate a SaaS, platform, or IP-driven business and investors, customers, or partners are requesting audited financials, start here.
Manufacturing, Distribution & Inventory-Based Businesses
If you hold inventory, manage production or logistics, and lenders or investors are requesting audited financial statements, start here.
HOAs, Property Associations & Community Organizations
If you serve on a board or manage an association with reserves, member assessments, or financing arrangements, start here.
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Why organizations in that space are commonly asked for audits or reviews
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Typical situations that trigger independent reporting
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What the audit or review process generally involves
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Key risk areas auditors focus on
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How to think about audit readiness before committing to an engagement
These pages are designed to help you have a more informed conversation with your auditor or advisor before moving forward.
Not Seeing your sector?
Not every organization fits neatly into a single industry category. Some operate across sectors, use emerging business models, or work in areas where reporting expectations are still evolving (for example, digital assets, platform-based models, agriculture, or other specialized operating environments).
If you don’t see your exact situation reflected above, that does not mean independent financial reporting is not relevant to you. In many cases, organizations with novel or hybrid structures benefit most from an upfront audit readiness discussion to clarify:
- What level of independent reporting stakeholders are likely to expect
- How your structure, funding sources, and operations affect reporting requirements
- What preparation would be helpful before engaging in an audit or review
A short audit readiness discussion can help determine the most appropriate path forward, even when there is no clear “industry box” to check.
Not Sure What Level of Independent Reporting Is Appropriate?
If you’re unsure whether an audit, review, or compilation is appropriate for your situation, a short audit readiness discussion can help clarify expectations and preparation needs before you commit to a formal engagement.
Jedidiah CPA works with organizations across sectors that are navigating audit and review requirements driven by growth, financing, governance, or regulatory expectations. Our approach focuses on helping leaders understand what level of independent reporting is appropriate and how to prepare efficiently for the process.
For those who would like additional background, you can review the lead partner’s professional experience and selected client feedback:
