USA Company Audit

With the complexity of the global economic environment and the continuous updating of US regulatory policies, the audit compliance requirements of US companies have also ushered in new changes. For example, the US Department of Agriculture (USDA) clearly requires in the "BioPreferred Program Annual Audit Regulations" that all companies participating in the program must complete the re-examination of product information within three years, otherwise their certified product pages may be marked as "outdated information" or even deleted directly. In addition, the audit data of CES 2025 shows that the attendance rate of technology industry executives and investors has increased significantly, reflecting the increasing importance of companies to compliance and auditing. In this context, understanding the latest requirements, processes and costs of US company audits and choosing professional service agencies have become the key for companies to maintain legal operations.

Core requirements for US company audits

Financial statement compliance

According to the US Generally Accepted Accounting Principles (GAAP), all companies must prepare annual financial statements (including balance sheets, income statements, and cash flow statements) and have a registered accounting firm issue an audit report. For example, Delaware requires companies to submit annual reports and franchise taxes by March 1 each year, while California uses the last day of the registration month as the deadline.

Industry-specific audit standards

Some industries need to follow additional special regulations. For example, companies participating in the USDA BioPreferred program must ensure that their products meet the biobased content standards and pass annual audits to maintain certification qualifications. Companies that fail to complete the audit will face the risk of product information being removed from the shelves (refer to the new USDA regulations on the 27th).

Information update and transparency

The company needs to update key data such as registered address, director/shareholder information, and operating status during the audit. If there is a change in equity or name modification, the corresponding documents (such as capital increase documents, name change certificate) must be submitted.

Detailed explanation of the audit process

Preparation stage

Collect information: organize bank statements, income invoices, contracts, tax records, etc., and classify them by income, expenditure, and assets.

Update information: Confirm that the company's registration information (such as address, management) is consistent with the actual situation to avoid audit delays due to data errors.

Audit execution

Financial statement preparation: The accountant generates reports according to GAAP standards to ensure that the data is true and accurate.

Third-party audit: Hire a registered accounting firm to conduct an independent audit and issue an audit report. For example, Delaware companies need to clearly disclose the payment of franchise taxes in the audit report.

Submission and Compliance

Document submission: Submit annual reports, audit reports and update documents through the official website of the state department or agency.

Fee payment: Pay annual report fees, state registration fees and audit service fees. Taking Delaware as an example, the annual fee of LLC is $300, and the audit fee ranges from thousands to tens of thousands of dollars depending on the size of the company.

Audit fee composition and reference standards

Basic fees

State-level annual fees: There are significant differences between states. For example, the annual fee of LLC in Delaware is about $300, while New York has no fixed annual report fee, but other taxes and fees are required.

Annual report fee: Usually between $50 and $300. California requires submission before the last day of the registration month, and the fee is about $150.

Audit service fee

Small business: If the financial structure is simple, the audit fee is about $3,000 to $8,000.

Medium and large companies: When it comes to complex transactions or cross-border business, the cost may be as high as $20,000 to $50,000, so you need to choose a firm with international experience.

Additional costs

Special industry audits: For example, BioPreferred certification requires additional product testing and audit fees, which average about $1,500 to $3,000.

Penalties for violations: Failure to audit on time may result in fines, and the fine for late submission of reports in Delaware can be as high as $100 per day.

Why choose NEO?

State-level regulatory team

NEO has deep roots in the field of corporate compliance in the United States and is familiar with the differentiated audit requirements of each state. For example, for the March 1 deadline in Delaware, the team can help companies plan ahead to avoid delays.

One-stop service for the entire process

From financial statement preparation, audit execution to document submission, we provide a "turnkey" solution. Especially for special audits such as BioPreferred, we can help companies quickly complete product information updates and compliance certification.

Technology drives efficiency

Use tools such as QuickBooks and Xero to optimize account management, and synchronize audit progress in real time through digital platforms to ensure transparency and efficiency.

Risk warning and cost control

Through regular risk assessment, potential problems (such as tax declaration omissions) are identified in advance to help companies avoid fines and reputation losses.

The compliance threshold and complexity of US corporate audits continue to increase. Companies need to pay close attention to regulatory changes (such as new USDA regulations and state deadlines) and use the resources and experience of professional institutions to ensure efficient processes and controllable costs. With a deep understanding of localization requirements, NEO helps companies move forward steadily in global competition.