{"ok":true,"canonical_url":"https://dealroom.so/glossary/audit-findings","api_url":"https://dealroom.so/api/public/glossary/audit-findings","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"audit-findings","term":"audit findings","group":"Reading the business","definition":"These are the conclusions and observations from an independent financial audit of the target business's financial statements. They highlight any discrepancies, weaknesses in internal controls, or non-compliance issues.","what_it_means":"If the seller provides audited financials, pay close attention to the audit findings. They can reveal critical insights into the business's financial health and operational risks that might not be obvious from the raw numbers. Discuss any significant findings with your CPA and lender, as they can impact valuation or loan approval.","url":"https://dealroom.so/glossary/audit-findings","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"}],"related_questions":[{"question":"What documentation demonstrates a lender's adherence to prudent lending standards during an SBA audit?","url":"https://dealroom.so/for-lenders/questions/what-documentation-demonstrates-a-lender-s-adherence-to-prudent-lending-standards-during-a"},{"question":"How does the SBA typically review a lender's loan file in the context of a secondary market audit?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-typically-review-a-lender-s-loan-file-in-the-context-of-a-secondary-marke"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — audit findings","url":"https://dealroom.so/glossary/audit-findings","source_type":"DealRoom Data"}}