Workflow Templates: External Audit Preparation Checklist

Ensure that all financial statements are up to date, including the balance sheet, income statement, and cash flow statement

Review and reconcile all ledger accounts to confirm accuracy of the financial data

Prepare and review the notes to the financial statements for completeness and compliance with accounting standards

Document the organization's internal control procedures and ensure they are in line with the current operations

Test internal controls for effectiveness and efficiency prior to the audit

Update the internal control documentation to reflect any changes made during the fiscal period

Gather and organize all relevant documentation that supports financial transactions, such as invoices, receipts, and contracts

Ensure that all schedules and analyses are prepared to support the amounts and disclosures in the financial statements

Create a list of pending legal matters and any external communications that could affect the financial statements

Schedule an initial meeting with the external auditors to discuss the audit plan, timeline, and any areas of focus

Designate internal staff who will be responsible for providing information and answering auditor queries

Prepare a workspace for the auditors that includes access to necessary technology and documents

Review all regulatory compliance reports and confirm that any required filings are up to date

Assess any changes in the regulatory environment that may impact the audit or financial reporting

Ensure that the company's financial practices are in accordance with the relevant accounting principles and standards

External Audit Preparation Checklist