Organized accounting records and supporting documents can make the audit preparation process more efficient. An external financial statement audit asks management to show how the numbers were produced and why they are reliable.
Preparation is mostly sequencing. The less time spent searching for invoices, agreements and reconciliations, the more time is available to explain judgments and resolve questions.
Information auditors commonly request
Expect requests for financial statements, trial balances, ledgers, bank reconciliations, receivable and payable listings, fixed asset registers, inventory support where relevant, major contracts and minutes or approvals for significant transactions.
Schedules that tie back to the statements — a debtors ageing that agrees to the balance sheet, for example — reduce follow-up. Documents that do not agree to the ledger create extra rounds of questions.
Start before the fieldwork
Close the period, post recurring adjustments, reconcile key accounts and file support against each balance. Agree a single contact for information requests so versions of files do not multiply.
Prime Perfect provides audit preparation support, help organizing financial records and schedules, and coordination of accounting information requested by external auditors. The external audit opinion itself remains the responsibility of the appointed auditor.
This article is general information for businesses in the UAE. It does not constitute tax, legal or accounting advice. Requirements depend on the circumstances of each business and should be confirmed against current regulations.