Audit readiness

How to prepare for a financial audit

Preparation should start before the auditor sends the first request list. What matters in practice is timing, ownership and document discipline. The earlier the company appoints a coordinator and closes the high-risk areas, the smoother the audit becomes.

14 Apr 20266 min readCFO / chief accountant
01
A timeline that starts 6 weeks before fieldwork.
02
20+ key documents in four practical categories.
03
One company-side coordinator removes half the communication noise.

Timeline — when to start

WhenWhat to doOwner
6 weeks beforeAppoint the audit coordinator and agree timing with the auditor.CFO / Management
4 weeks beforeClose bank reconciliations, start balance confirmations, update the lease register.Chief Accountant
3 weeks beforePrepare provision support, disputes file, CIT and deferred tax calculations.Finance / Legal
2 weeks beforeUpdate notes, accounting policy and subsequent events list.Chief Accountant / CFO
1 week beforeSend the first document pack and confirm availability of key people.Audit Coordinator

Checklist of documents and reconciliations

  • Bank confirmations and reconciliations
  • Receivable and payable confirmations for key balances
  • Draft financial statements and trial balance
  • Current tax and deferred tax calculations
  • Lease register with amendments and rates
  • Provision calculations and legal opinions where relevant
  • Related-party transactions schedule and TP support
  • Updated accounting policy and draft notes
  • List of subsequent events up to sign-off

What most often slows the audit

Provisions without written support — the company knows the rationale, but nothing is documented.
Notes rolled from prior year — the business changed, but disclosures did not.
Missing confirmations — internal extracts replace external reconciliation.
Practical win: one tracker with status, owner and due date for every document reduces confusion dramatically.

Who should coordinate the audit

The coordinator should be the first point of contact for the auditor, keep the open-items list current and escalate only those matters that truly need CFO or board judgement.

Common questions

Should the auditor wait for complete documentation before starting?
Not entirely. Planning and analytical work can start earlier, but key documents still need to be ready in time for the audit to finish smoothly.
What if not all documents are ready?
The audit takes longer, the cost may rise and, in severe cases, the lack of evidence can affect the opinion.

See how this applies to your company

If you want to assess what this means for your company, prepare for audit or discuss a specific reporting issue, speak directly with a statutory auditor.

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