Financial Reporting Checklist

Export the WTB from QuickBooks, Sage Intacct, or NetSuite as of the period-end date. Lock the period in the GL before exporting so late entries don't shift balances mid-review. Save the export to the engagement workpaper folder as the binding tie point for every downstream lead schedule.

For year-end runs, verify revenue and expense accounts roll to zero and the net result lands in retained earnings with a memo. AJEs posted directly to RE without a supporting workpaper are a recurring partner-review fail.

Tie A/R aging to GL receivables, A/P aging to GL payables, inventory to the perpetual count, and the loan schedule to the lender statement. Differences over $1,000 get flagged on the reconciling-items workpaper.

Walk the last week of revenue and the first week of the following period to confirm transactions sit in the correct period under ASC 606. Misposted invoices around period-end are the most common cutoff finding in review engagements.

For each flagged account, pull the GL detail and identify the driving transactions. Document the explanation in the variance workpaper — partner review will reject "timing" or "miscellaneous" without supporting detail.

Compute current-period gross margin and compare to trailing 12 months. Investigate compression or expansion greater than 200 basis points. Common drivers: COGS posted to wrong period, freight reclassed, vendor rebates accrued late.

Every balance sheet line should foot to the WTB to the penny. Mismatches usually mean a reclass landed after the TB export — re-pull and re-tie rather than plugging.

Attach the completed bank rec workpaper for each account. Investigate uncleared items older than 30 days; stale outstanding checks over 90 days should be researched and either voided or escheated per state unclaimed-property rules.

Add additions, remove disposals, and post the period's depreciation entry per the Form 4562 schedule or book depreciation policy. Confirm accumulated depreciation on disposals was reversed; stranded accumulated depreciation is the most common roll-forward error.

Use the indirect method: start from net income, add back depreciation and amortization, then layer working-capital changes from the comparative balance sheet. Investing covers capex and asset sales; financing covers debt and equity movement.

Beginning cash plus net change must equal ending cash on the balance sheet. A penny-off reconciliation almost always means a working-capital line was pulled from the wrong period or a non-cash item slipped into operating.

Confirm policies are described consistently with how transactions were actually recorded in the period — revenue recognition timing, inventory method, depreciation lives, lease accounting under ASC 842. Carry-forward language without a re-read is a common SSARS finding.

Inquire of management about events between the balance sheet date and the report-issuance date. Material lawsuits, debt covenant breaches, large customer losses, or acquisitions need either recognition (Type 1) or disclosure (Type 2) under ASC 855.

For each Type 2 event, write the nature of the event and an estimate of financial effect (or a statement that an estimate cannot be made). Type 1 events require adjusting the financial statements themselves, not just a note.

Confirm presentation aligns with the framework declared in the engagement letter — US GAAP for most SMB clients, IFRS for foreign-parent subsidiaries. Recent FASB updates (CECL, lease accounting, segment reporting) commonly trip carry-forward templates.

Loans to or from owners, rent paid to a shareholder-owned LLC, and management fees to affiliates require ASC 850 disclosure of nature, amount, and terms. Cross-check against the Schedule L and K-1 distributions on the latest tax return.

For year-end runs, verify the financial statement package supports the upcoming 1120/1120-S/1065 filing, any state franchise filings, and lender covenant submissions. Note covenant ratios (DSCR, debt-to-EBITDA) and flag breaches before issuance.