Preparing for an audit is easier when you know what information your auditor needs. Having your financial records and supporting documents ready helps the audit progress smoothly and reduces follow-up queries.

Start with your financial records

Your auditor will generally request your draft annual financial statements, trial balance and general ledger. For a first audit with a new auditor, prior-year financial statements, the signed audit report and any management letter or audit closing report are also useful.

Before providing the records, check that reconciliations are complete and supporting schedules agree with the balances in your accounts.

Provide support for your year-end assets and liabilities. The documents required depend on your organisation, but commonly include:

• Cash and bank accounts: year-end bank statements and bank reconciliations.

• Amounts owed to your organisation: aged receivables reports, evidence of subsequent receipts and explanations for overdue balances.

• Property, plant and equipment: an asset register, depreciation calculations and documents supporting purchases and disposals.

• Investments: year-end statements and supporting valuation information.

• Amounts owed to suppliers: aged payables reports, supplier statements and relevant invoices.

• Loans: loan agreements, lender statements and reconciliations.

• Employee entitlements and other provisions: calculations showing how the balances were determined, including relevant payroll records, assumptions and supporting information.

• Accruals and income received in advance: schedules explaining the balances, with relevant invoices, agreements or calculations.

• Grant agreements, lease documents, board or committee minutes and details of significant changes during the year may also be required.

Plan ahead

Agree on an audit timetable early, nominate a key contact and let your auditor know if any records will be delayed. Some procedures, such as attending an inventory count, may need to be arranged before year end.

Audit Edge can provide an audit information checklist tailored to your entity and its reporting requirements.