- Don't submit to an audit on the spot if it upsets essential client meetings.
- Don't try to anticipate what the auditor will focus on.
- Develop a compliance manual for your practice.
- Don't apply logic to SEC requirements.
- 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.
- Make sure you have the files needed to back up the fees and procedures filed in the ADV.
- Don't get too anxious.
- Make sure information can be found when it is needed.
- Appoint one person to do all compliance work.
- Re-examine contracts to ensure they specify essential clauses.
Source: "Best Practices for Financial Advisors," Mary Rowland
