Everything to prepare before auditors arrive — schedules, reconciliations, contracts and board minutes — organised by audit area to minimise queries.
1. Pre-Audit Planning
- Audit timetable agreed with auditorsFieldwork dates, draft accounts deadline, and sign-off date confirmed in writing.
- Audit team introduced to finance staffKey contacts across the business identified and introduced to the audit team.
- PBC list reviewed and responsibilities allocatedPrepared by client (PBC) list reviewed; each item assigned to a named finance team member with a due date.
- Prior year audit adjustments confirmedAll prior year audit adjustments posted; prior year issues reviewed and resolved before fieldwork begins.
- Materiality threshold confirmedMateriality level agreed with the audit team; focus areas and significant risk items identified.
2. Financial Statements & Working Papers
- Trial balance extracted and reconciledTrial balance agreed to nominal ledger with no unallocated or suspense items outstanding.
- Draft statutory accounts preparedFull draft including all notes and disclosures prepared for auditor review.
- Revenue recognition workings preparedContract-by-contract schedules prepared supporting the revenue recognition approach applied.
- Fixed asset register reconciledAdditions, disposals, and depreciation charge reconciled to the nominal ledger; supporting invoices filed.
- Deferred revenue schedule preparedOpening balance + additions − released = closing balance schedule prepared with supporting analysis.
- Provisions and accruals scheduleEach provision and accrual item justified with supporting evidence and calculation methodology.
- Related party disclosure scheduleAll transactions with directors, shareholders, and connected parties listed with amounts and terms.
3. Balance Sheet Reconciliations
- Cash reconciled to year-end statementsAll bank accounts reconciled to year-end bank statements; bank confirmation letters sent to all banks.
- Debtors: aged report and bad debt provisionAged debtor report prepared; bad debt provision calculated and evidenced with debtor-by-debtor analysis.
- Creditors: supplier statements reconciledSupplier statements obtained and reconciled for all material creditors; differences investigated.
- Tax balances reconciledCorporation tax, VAT, and PAYE balances each reconciled to HMRC correspondence and returns.
- Intercompany balances confirmedAll intercompany balances agreed with each entity; any differences investigated and resolved.
- Equity reconciledShares in issue confirmed against Companies House register; option pool schedule prepared and agreed.
4. Legal & Governance Documents
- Board minutes providedFull set of board minutes for the financial year filed and available for auditor review.
- Shareholder agreements and investment documentsLatest versions of all shareholder agreements and investment documents filed and accessible.
- Significant contracts providedTop 10 customer contracts and key supplier agreements provided to auditors for review.
- Legal correspondence disclosedAny disputes, claims, or regulatory matters disclosed to auditors with supporting correspondence.
- Post balance sheet events reviewedManagement representation letter drafted covering all events from year-end to expected sign-off date.
5. Audit Facilitation
- Finance team available during fieldworkFinance team availability confirmed for the fieldwork period; daily check-in with audit manager scheduled.
- Query tracker establishedShared log of auditor queries created with responsible owner and due date for each item.
- Draft accounts review meeting scheduledCFO review of draft accounts with engagement partner scheduled before sign-off.
- Going concern paper prepared12-month cash flow forecast prepared supporting the going concern assumption; board-approved.
- Representation letter reviewed and signedManagement representation letter reviewed by CFO and signed by relevant director before sign-off.
