What triggers an examination?

Selection criteria are not published. Cash-intensive operations with inventory-driven cost of goods sold generally warrant careful documentation regardless of selection risk.

What should we do first after receiving a notice?

Note the response deadline, avoid partial or informal responses, and assemble the records with your representative before replying.

Do you guarantee an examination outcome?

No. We prepare and present documentation supporting positions taken. Outcomes are determined by the examining authority.

Service

Audit Representation

Examinations of cannabis businesses tend to focus on inventory costing, cost of goods sold, and cash handling. Preparation is largely a documentation exercise, and the work that matters most happens before any notice arrives.

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Executive boardroom with financial reports prepared for a client review

Examination Support

We coordinate the response, assemble the requested records, and prepare reconciliations that connect the return to the underlying books. Communication is centralized so the operator is not responding to requests piecemeal.

Information document request tracking and response assembly
Reconciliations from return to trial balance to subledger
Explanation memos for costing methodology and allocations

State Tax and Regulatory Reviews

Sales and excise tax reviews focus on collection, exemption handling, and remittance. Regulatory inspections focus on tracking-system accuracy and recordkeeping. Both are easier when reconciliations already exist.

Building an Audit-Ready File

A standing file containing the costing policy, allocation workpapers, monthly reconciliations, and cash procedures converts an examination from a reconstruction project into a retrieval exercise.

Scope of Representation

We provide accounting and tax representation within the scope of our engagement. We do not provide legal advice, and we coordinate with your attorney where a matter calls for it.

Frequently Asked Questions

What triggers an examination?: Selection criteria are not published. Cash-intensive operations with inventory-driven cost of goods sold generally warrant careful documentation regardless of selection risk.
What should we do first after receiving a notice?: Note the response deadline, avoid partial or informal responses, and assemble the records with your representative before replying.
Do you guarantee an examination outcome?: No. We prepare and present documentation supporting positions taken. Outcomes are determined by the examining authority.

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