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How to prepare for an audit
Preparation shortens the audit and reduces questions. A practical list of steps for the finance team and management.
Agree on a plan
Agree on timing, the list of documents and contact persons with the auditor. Appoint a person responsible on the company side.
Get the accounting in order
- close the reporting period in the accounting system;
- carry out a stocktake of assets and liabilities;
- reconcile balances with counterparties and tax authorities;
- check source documents for major transactions.
Prepare documents
- accounting policies and related orders;
- financial statements and ledgers;
- contracts for significant transactions;
- minutes of governing bodies.
During the audit
Respond to requests within the agreed time. If data is not ready, let the auditor know in advance.
After the audit
Discuss findings and recommendations with the auditor. Use them to improve accounting next year.