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Financial Audit Preparation Checklist
Financial Statement Preparation
Ensure all financial statements are complete and include the balance sheet, income statement, and cash flow statement
Reconcile all bank statements with the general ledger
Review and finalize the trial balance
Documentation Gathering
Compile all bank statements, invoices, receipts, and expense reports
Collect documentation for all asset purchases, sales, and depreciation schedules
Gather all loan agreements and payment schedules
Internal Controls Review
Document and review internal control procedures for financial reporting
Test selected internal controls for effectiveness
Prepare a summary of internal control findings for auditors
Tax Compliance and Liabilities
Reconcile tax accounts and ensure all tax returns are filed
Review and calculate all tax liabilities, including estimated tax payments
Ensure compliance with all local, state, and federal tax regulations
Account Analysis and Reconciliation
Perform detailed account analysis to ensure accuracy of all ledger entries
Reconcile significant accounts, including accounts receivable and payable
Review and confirm intercompany transactions and balances
Audit Trail Preparation
Organize a clear audit trail for transactions throughout the fiscal year
Ensure all adjusting journal entries are properly recorded
Maintain a list of all journal entries made during the period under audit
