Auditors have a reputation for asking very specific (and sometimes annoying) questions. It can feel like they’re asking for things you’ve already explained, or for information that seems obvious or unnecessary.
So why do they ask?
Short answer: because auditing standards require them to and because those questions help them build evidence that your financial statements are accurate, complete and reliable.
Below is an FAQ explaining some of the most common auditor questions and what they’re really trying to achieve.
“Can we see you run the journal listing or sales order report directly from the system?”
Why does my auditor ask this?
To check the integrity of the data.
What that means in practice
Auditors don’t just rely on totals in the accounts, they also need to understand how those numbers were created. Reviewing journal listings or sales order run‑offs allows them to:
- Confirm the data comes directly from your system
- Check that journals and transactions are complete and sequential
- Look for unusual or manual entries that could indicate error or fraud
It’s a standard way of gaining comfort that the underlying data hasn’t been altered or selectively provided.
“Can we see your online bank balances?”
Why does my auditor ask this?
While auditors often use bank confirmation letters, these do not always provide a full picture, for example, newly opened, dormant, or low‑activity accounts might not be captured, or confirmations may be delayed or incomplete.
What that means in practice
Although auditors do request bank confirmation letters, these don’t always tell the full story. Some accounts may be omitted, dormant, or newly opened.
By reviewing online banking access, auditors can:
- Confirm all bank accounts are included in the financial statements
- Check balances independently at the year end
- Reduce the risk that an account (and its balance) has been overlooked
This is about completeness.
“We need you to perform an impairment test.”
Why does my auditor ask this?
Your results suggest that the indictors for an impairment test under FRS 102 may be present.
What that means in practice
Under FRS 102, certain indicators such as trading losses trigger the requirement to carry out an impairment review.
Auditors can’t carry out the impairment test for you, that is the responsibility of management.
Even if management believes an asset is still worth its carrying value, the standard requires that:
- An impairment test is formally performed
- The assumptions and conclusions are documented
- The outcome is supported by evidence
So this isn’t about forcing an impairment, it’s about complying with the accounting standard.
“Can you provide a going concern assessment?”
Why does my auditor ask this?
Management is required under the ISAs to assess going concern for at least 12 months from the expected date of sign‑off as required by ISA 570.
What that means in practice
Auditors can’t make the going concern assessment for you, that responsibility sits squarely with management.
They need to see that you have:
- Considered future cash flows and funding
- Thought about risks and uncertainties
- Looked forward at least 12 months from when the accounts are signed
The auditor’s role is to review and challenge your assessment, not replace it.
“We need to understand your IT controls.”
Why does my auditor ask this?
ISA 315 (revised) requires auditors to assess IT controls to understand how systems support financial reporting and identify risks of error or fraud.
What that means in practice
Modern accounts rely heavily on IT systems, accounting software, spreadsheets, sales systems, and cloud platforms.
By understanding your IT controls, auditors can:
- See how transactions are initiated, processed and reported
- Identify where errors or manipulation could occur
- Decide how much reliance they can place on system‑generated data
This doesn’t mean your systems are deficient, it means auditors must understand them before relying on them.
The takeaway
Most audit questions fall into one of three buckets:
Completeness – is everything included?
Ensuring no transactions, balances, or disclosures have been omitted.
Accuracy – is the information reliable?
Confirming data integrity, supporting evidence and proper classification.
Compliance – are standards and regulations being followed?
Your auditor isn’t asking these questions to slow you down or catch you out, they’re gathering evidence to support an independent opinion.
And yes… sometimes that means asking for things that feel obvious.
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