Private Company Audits
dbbmckennon provides financial statement audit services for privately held companies with investor, lender, ownership, transaction, or governance requirements. Our approach combines technical rigor, practical communication, and partner involvement.
We work with growing businesses that need an experienced audit firm capable of handling increasingly complex financial reporting while remaining responsive and accessible.
Audit Services for Privately Held Companies
Private companies pursue audits for many different reasons. In some cases, an audit is required by a lender, investor, shareholder agreement, or other contractual arrangement. In others, management or ownership may choose an audit to support a transaction, strengthen governance, or prepare for future growth.
dbbmckennon works with privately held companies across a range of industries and stages of development.
Common Reasons Private Companies Need an Audit
A private company may need or choose to obtain audited financial statements for:
Investor or shareholder requirements
Bank or lender requirements
Private equity or venture capital reporting
Mergers, acquisitions, or sale transactions
Board or governance requirements
Employee stock ownership or equity plans
Future capital raising
Preparation for a potential public-market transaction
Financial Reporting for Growing Companies
As private companies grow, their accounting and reporting often become more complex.
Areas that may become more significant include:
Revenue recognition
Equity and stock-based compensation
Business combinations
Lease accounting
Debt and financing arrangements
Covenant tracking
Related-party transactions
Consolidation matters
Impairment and valuation issues
Financial statement presentation and disclosures
Our team focuses on identifying issues early and maintaining clear communication throughout the engagement.
Audits for Investor-Backed Companies
Many privately held companies eventually take on institutional capital or more sophisticated reporting requirements.
dbbmckennon has experience working with venture capital-backed companies, private equity portfolio companies, and other investor-backed businesses that require audited financial statements.
For more information, see our Private Equity & VC-Backed Company Audits page.
Preparing for Future Transactions
A private company audit can also become part of a broader growth or transaction strategy.
Companies considering an acquisition, sale, financing, IPO, reverse merger, or other significant transaction may benefit from having audited historical financial statements already in place.
For companies preparing to enter the public markets, see our IPO & Going-Public Company Audits page.
Why Private Companies Choose dbbmckennon
Partner Involvement
Our partners remain actively involved throughout the engagement and are available when significant audit or accounting matters arise.
Responsive Communication
We emphasize communication throughout the audit process so questions and issues can be identified and addressed early.
Experience With Growing Companies
We regularly work with companies whose operations, financing, and reporting requirements become more complex as they grow.
Relationships That Last
We want to understand our clients' businesses and build relationships that continue as their companies evolve.
Frequently Asked Questions
Why would a private company need an audit?
A private company may need an audit because of lender, investor, shareholder, transaction, or governance requirements. Some companies also choose an audit in preparation for future financing or growth.
What is the difference between an audit and a review?
An audit provides a higher level of assurance and involves more extensive procedures than a review. A review provides limited assurance and generally involves inquiry and analytical procedures.
Does dbbmckennon work with venture-backed and private equity-backed private companies?
Yes. We provide audit services to both venture capital-backed and private equity-backed companies.
Can a private company use a PCAOB-registered audit firm?
Yes. Private companies can engage a PCAOB-registered firm. Whether PCAOB standards are required depends on the specific engagement and reporting requirements.
Can dbbmckennon continue working with a company if it later goes public?
Potentially, yes, subject to independence and other applicable requirements. We work with companies at both the private and public-company stages.
Talk With an Audit Partner
If your company needs audited financial statements for investors, lenders, governance, a transaction, or future growth, we would be glad to discuss your needs.