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Audit Preparation checklist
Financial Statements Review
Ensure all financial statements are complete and include balance sheet, income statement, cash flow statement, and statement of changes in equity.
Review significant financial statement line items for reasonableness and consistency with prior periods.
Prepare notes to the financial statements, including disclosures of significant accounting policies and other relevant information.
Internal Control Evaluation
Document and assess the effectiveness of internal control over financial reporting.
Identify any changes in internal control since the last audit period.
Communicate with management regarding observations and potential improvements in internal control.
Account Reconciliation and Analysis
Reconcile all significant accounts, including but not limited to cash, accounts receivable, inventory, and fixed assets.
Investigate and document any reconciling items or discrepancies found during the reconciliation process.
Perform analytical procedures on significant account balances to identify unexpected fluctuations or trends.
Documentation and Record Keeping
Gather and review all relevant audit documentation, including invoices, contracts, and correspondence.
Ensure all documents are appropriately filed and easily accessible for audit testing.
Verify that the accounting records are up to date and accurately reflect all transactions and events.
Compliance and Regulatory Review
Review the organization's compliance with applicable laws and regulations.
Assess the adequacy of documentation supporting compliance-related transactions and events.
Evaluate the potential impact of non-compliance on the financial statements and disclosures.
Tax Considerations
Prepare or review the tax provision calculations and related disclosures.
Ensure compliance with all tax filing requirements and deadlines.
Identify and document any uncertain tax positions and the associated risks.
