What a Series B Treasury Audit Actually Checks

The audit will ask for your current, board-approved treasury policy and evidence of that approval, not just a document sitting in a shared drive that nobody formally signed off on. If your policy predates the current balance sheet size, expect a follow-up question about whether it's actually still appropriate, which is a good reason to update it before the audit rather than during it.

Have the approval trail, board minutes or a signed resolution, readily available rather than needing to search for it when asked.

Expect a request to show that actual cash holdings, across every bank and instrument, match what the policy permits and stays within its concentration limits. This is where an out-of-date policy or a quietly drifted concentration limit gets caught, so run this reconciliation yourself before the audit does, and fix any gap you find rather than waiting to explain it to someone else first.

Build this reconciliation as a recurring internal exercise, not a one-time pre-audit scramble, so it's always current when someone asks.

The audit will check who has wire and payment authority on each account, whether dual-authorization thresholds are actually configured at the bank level rather than just described in policy, and whether departed employees still retain access anywhere. Access controls that were never cleaned up after a role change or an offboarding are one of the more common findings at this stage, since it's an easy thing to forget in the day-to-day.

Run an access audit across every bank and platform before the formal review, and revoke anything that doesn't match your current org chart.

If cash moves between related entities, the audit will ask for the loan agreements or capital contribution records behind those transfers, with terms that reflect an arm's length standard. An undocumented intercompany transfer is a flag regardless of dollar amount, since the concern is about the lack of a paper trail, not necessarily the size of the transaction.

Get this documentation current before the audit if it's been informal up to this point; it's a straightforward fix if you address it proactively and a much harder conversation if the auditor finds the gap first.

While not strictly a controls question, a Series B audit or board review will typically want to see that your burn multiple is being tracked consistently and benchmarked against a realistic range for your ARR stage, rather than presented inconsistently from quarter to quarter¹. Auditors and boards read an inconsistent calculation method as a broader signal about financial discipline, even when the underlying number itself isn't the direct subject of the review.

Many finance teams run this consistency check through an AI assistant like Frank, MeetMyCFO's AI CFO, specifically because catching a calculation drift before a board or audit review is a repetitive task that benefits from being automatic.

Before the actual audit, pull together every document above yourself and see where the gaps are. Companies that run their own internal dry run a few weeks ahead consistently walk into the real review with fewer surprises than ones that treat the audit itself as the first real test of their documentation. The dry run costs a few hours; the alternative costs a much longer, more uncomfortable real review.

Pull these items together yourself before the real review:

• Your current board-approved treasury policy, plus evidence that the board formally approved it.
• A reconciliation showing actual holdings across every bank and instrument against what the policy permits, including concentration limits.
• A list of who holds wire and payment authority on each account, with proof that dual authorization is configured at the bank and that departed employees have lost access.
• Loan agreements or capital contribution records for any cash moving between related entities.
• Consistent tracking of your burn multiple, benchmarked against a realistic range for your ARR stage.

On the day of the review, the strongest position is having a single point person who can pull any of the five items above within minutes, rather than a review that requires assembling answers from three different people who each hold one piece of the picture. Assign that ownership explicitly ahead of time, and treat the audit itself as a confirmation of work already done, not the moment the work actually happens.