Overview
Preparing for a financial statement audit is essential for ensuring that an audit runs smoothly.
Proper preparation helps identify and resolve potential issues before auditors arrive, reducing the risk of adjustments or delays.
By organizing documentation, reconciling accounts, and addressing discrepancies early, businesses can streamline the audit process, saving significant time and money.
A well-prepared audit not only minimises disruptions to daily operations but also builds confidence with stakeholders, demonstrating transparency and sound financial management.
Here are some practical ways to ensure your audit runs efficiently:
Ensure support held for all balance sheet items
As year-end numbers are finalised, save the support for key balances or upload straight to Inflo.
Review accuracy of schedules provided
Ensure all schedules, reconciliations, and supporting documents are accurate and agree back to the trial balance.
If lots of information to upload it can help the team if documents/samples are referenced.
Ensure requests are provided by the agreed dates
If agreed dates are likely to be missed, communicate early so alternative plans can be made
Consider areas of subjectivity
Ensure estimates, and judgements are documented and explained. Consider areas previously discussed and assess these in advance of work starting e.g. impairment reviews, release of long term revenue, application of IFRS15 5 step revenue model, going concern assessments etc
Be available during fieldwork dates
If you’re able to respond to questions/requests swiftly, this means the team will be kept busy and can prioritise work in the most efficient manner
Pick up the phone
If you feel like something is being lost in translation over Inflo it may be easier to discuss on a call.
We’re all guilty of getting stuck in a back and forth over email or Inflo. If it’s easier to chat things through, just let us know and we’ll set up a Teams call.
Consider providing Inflo access to others in your team
This means sections can be delegated to others (freeing up your own time).
Inflo can be tailored so that sections can only be viewed by certain users.
This means areas of sensitivity such as wages, directors minutes etc don’t need to be seen by anyone that wouldn’t normally see this information.
Ensure key events and changes are communicated prior to work starting
This will ensure we can tailor our work effectively and request relevant information early.
Address management letter points from previous audits
Assess adjustments and deficiencies raised in previous year audits to avoid the same points being raised in the current year
Hold the auditors accountable
If all dates have been met and the quality of information is strong, then we should be delivering our side (as agreed) too!
Thinking ahead about your next audit? Menzies Corporate Audit team can help you prepare early, avoid common pitfalls, and keep the process running smoothly.
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