1. Close the Accounting Period
Ensure transactions relating to the period are recorded, bank reconciliations are complete, and customer, supplier, asset, and accrued expense balances are reviewed before sharing the trial balance.
Early audit preparation improves data quality and reduces time spent on queries and missing documents. It starts with clear responsibilities and well-organized core records.
2. Prepare the Document File
Create clearly organized folders for financial statements, trial balance, bank statements, contracts, material invoices, fixed asset register, returns, and relevant resolutions or minutes.
3. Prepare Reconciliations & Supporting Schedules
Material balances should be supported by reconciliations and schedules traceable to accounting records and supporting documents.
4. Define a Point of Contact
Assign one person to receive information requests, distribute them, and track responses; this reduces duplication and prevents conflicting versions.
5. Review Prior Observations
Review observations raised in prior periods and confirm that agreed remediation has been completed before the new engagement begins.
Quick Checklist
Before getting started, make sure the following are available
- Final Trial Balance for the Period
- Bank Reconciliations for All Accounts
- Asset Register, Additions & Disposals
- Customer & Supplier Statements and Aging
- Material Contracts & Obligations
- Returns & Related Correspondence
Professional Notice
This content is general and educational and does not replace an assessment of the organization's specific circumstances based on its data and current official requirements.