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Cannabis Industry Services

Cannabis Industry Audits

An auditor who does not understand cannabis will spend your money testing the wrong things.

An auditor who does not understand cannabis will spend your money testing the wrong things. Inventory in a cultivation operation behaves differently than inventory anywhere else โ€” it changes weight, it is tracked in a state system that must reconcile to your ledger, and how it is costed determines your federal tax bill.

We audit cannabis businesses specifically, which means we know where the risk actually sits.

What's Included

โœ“Inventory โ€” existence, valuation, and seed-to-sale reconciliation
โœ“Cash receipt โ€” and handling control testing
โœ“COGS allocation โ€” methodology review
โœ“Revenue recognition โ€” and POS integrity
โœ“Related-party โ€” and inter-company transaction review
โœ“Management letter โ€” with prioritized, actionable findings

Why This Differs In Cannabis

Standard audit programs assume inventory sits still and cash is rare. Neither holds here. A cultivation audit has to account for moisture loss between wet and dry weight, waste destruction records, and product moving between license types. A retail audit has to test cash controls at a volume most auditors never encounter. These are not edge cases in cannabis โ€” they are the main event.

We know where the risk actually sits.

Why MCA

We have served licensed cannabis operators since 2015 โ€” one of the first firms in the country to build a practice around it โ€” and we have worked with more than 100 operators across 30+ states. Cannabis is all we do, and all we have ever done.

Frequently Asked

Do we need an audit?

Sometimes it is required by a lender, investor, or regulator. Sometimes it is worth doing before someone else does it for you.

How is this different from a 280E compliance audit?

This is a broader engagement. A 280E compliance audit focuses specifically on cost allocation and its documentation.

How long does it take?

Depends on size and record quality โ€” typically four to eight weeks.