The Story Behind the Numbers: Digging into Start-up Companies' Experiences in Facing Audits

Abstract

This article aims to explore the experiences of start-up companies in facing the audit process, focusing on the challenges, strategies, and lessons learned from the experience. This study uses a qualitative approach by conducting in-depth interviews with owners and managers of eight start-ups operating in Indonesia that have undergone the audit process in the past two years. The findings show that many start-ups experience uncertainty and confusion when facing an audit, especially in understanding the procedures and requirements needed. However, with thorough preparation, such as implementing a good accounting system and internal training, many of them are able to overcome these challenges. The audit process also provides new insights into the importance of transparency and accountability in financial management. Several start-up owners reported that the audit experience not only increased their confidence in managing financial statements, but also provided added value in terms of trust from investors and business partners. This article is expected to be a guide for other start-ups in preparing for an audit and provide auditors with a better understanding of their clients' perspectives and concerns.