Audit Readiness refers to the preparation state of a protocol before engaging a security auditor. A protocol is considered audit-ready when its codebase is frozen at a specific commit hash, test coverage meets minimum thresholds (ideally 100% branch coverage), critical invariants are documented, and architecture documentation is complete. Protocols that invest in audit readiness typically receive faster turnaround, lower costs, and more thorough findings from auditors, because the auditor spends less time understanding the system and more time finding vulnerabilities. Tools like Krait can help teams assess their readiness by running AI-powered pre-audit scans that identify obvious issues before the formal engagement begins.