Modern Corporate Treasury, Cash Yield & Banking ArchitecturePlaybook3 min readUpdated September 2026

What a Series B Treasury Audit Actually Checks

A treasury audit at Series B looks very different from whatever informal review happened at Series A, mainly because the balance sheet, the number of banking relationships, and the board's expectations have all grown. Walking in unprepared usually doesn't produce a failed audit so much as a longer, more uncomfortable one, full of "let us get back to you on that" answers.

Here's what a Series B-level treasury audit typically actually checks, so you can prepare the answers before someone asks the questions.

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Documentation of the treasury policy itself

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.

Reconciliation of actual holdings against the policy

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 This is where an out-of-date policy or a quietly drifted concentration limit gets caught, so run this reconciliation yourself before the audit does, and fix any gap you find rather than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.

Approval and access controls on every account

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.

Intercompany documentation if you have more than one entity

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.

How your burn multiple and runway story hold together

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.

A dry run is worth the time it takes

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.

What good preparation actually looks like on the day

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.

Executive Capability Standard

What Good Looks Like

Good audit readiness means you could hand over every document above today, without a scramble, because the underlying reconciliation and access reviews already happen on a regular cadence.

Building The Capability (5-Stage Skill Ladder)

1. Learn:Pull your current treasury policy, access lists, and intercompany documentation to see what's actually current.
2. Do Manually:Run a manual reconciliation of actual holdings and access against your policy ahead of any scheduled review.
3. Delegate:Have your controller own a recurring quarterly reconciliation and access audit rather than a pre-audit scramble.
4. Automate:Use a compliance automation platform to maintain continuous evidence of access controls and policy adherence.
5. Buy:Bring in a fractional CFO or audit-readiness consultant to run a dry run and close gaps before the real review.

How to Get Started

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Frequently Asked Questions

Who typically conducts a treasury audit at the Series B stage?

It might be your existing external auditor as part of a broader financial statement audit, a board-requested internal review, or a diligence team if the review is tied to the fundraise itself. The specific documentation expectations are similar across all three, even though the formality and scope can differ.

What's the single most common finding in these reviews?

Access controls that weren't cleaned up after a role change, an offboarding, or a team restructuring, leaving someone with wire or payment authority they shouldn't still have. It's rarely malicious, just an easy thing to forget without a recurring access review process.

How far in advance should we start preparing for a treasury audit?

A few weeks of lead time is usually enough if your underlying documentation and controls are reasonably current, since the prep work is mostly gathering and verifying existing records. If your policy or documentation is genuinely out of date, start earlier, since fixing real gaps takes longer than compiling paperwork that already exists.

Sources

Where we quote a benchmark, we show its source. Other figures in this guide are estimates or general guidance, so check them against your own numbers.

  1. Burn multiple guidance bands by ARR (net burn / net new ARR). a16z Growth burn multiple framework (Kahl & George, 'A Framework for Navigating Down Markets', May 2022), table transcribed by Kruze Consulting, 2022.

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