Glossary · Reading the business
Audit
In short
The highest level of financial statement assurance, where an independent accountant examines a company's financial records to express an opinion on whether they are fairly presented.
What it means in a deal
Audited financials are rare for the small businesses typically acquired with a 7(a) loan. If available, they provide a strong level of comfort regarding the accuracy of historical financial data. However, don't rely solely on an audit; your due diligence should still verify key operational and financial aspects relevant to your purchase.
Related terms
Common questions about Audit
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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