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Practice Management > Compensation and Fees

Surviving an audit

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  1. Don’t submit to an audit on the spot if it upsets essential client meetings.
  2. Don’t try to anticipate what the auditor will focus on.
  3. Develop a compliance manual for your practice.
  4. Don’t apply logic to SEC requirements.
  5. Assign one person to work with the auditor, including finding him a place to work and asking for a list of documents he needs to see.
  6. Make sure you have the files needed to back up the fees and procedures filed in the ADV.
  7. Don’t get too anxious.
  8. Make sure information can be found when it is needed.
  9. Appoint one person to do all compliance work.
  10. Re-examine contracts to ensure they specify essential clauses.

Source: “Best Practices for Financial Advisors,” Mary Rowland