Why companies commission one
Audits are usually triggered by an event: a financing round, an acquisition on either side, a launch in a new market, a dispute with a departing founder, or a lender asking what collateral exists. Others are routine, done because a business has grown and its paperwork has not kept pace. A buyer or investor will look at the same questions, and problems found by your own side can usually be fixed on your schedule rather than theirs. An audit is not a search of everything in the world. It is a review of what the company believes it owns and whether the record supports that belief.
What gets reviewed
The core of most audits is the chain of ownership. That means employee and contractor agreements with present assignment language, founder assignments signed before the company existed, and registrations that name the right entity. Registered rights are checked for status, upcoming deadlines, and whether they still match the products being sold. Software audits usually include an inventory of open-source components and their license terms, since some licenses carry obligations that matter in a sale. Confidential information gets a different kind of review, focused on how it is marked, who has access, and what departing employees sign.
Turning findings into fixes
Most findings can be repaired. A missing assignment can often be signed now, an outdated owner name can be corrected by recording a transfer, and a lapsed filing may or may not be revivable depending on the circumstances. Some findings are harder, such as a former contractor who will not sign or a mark that conflicts with an earlier user. At the outset we agree on scope, because an audit for a single financing differs from a full portfolio review, and we decide how findings will be reported so that the work stays protected as far as the law allows. We then rank what we find by what would actually stall a deal or a launch.
