Workflow Templates: Financial Audit Checklist

Planning and Preparation

Review prior year's audit reports and work papers

Discuss with management about changes in business activities and operations

Evaluate the effectiveness of internal control systems and procedures

Prepare a detailed audit plan, including timelines and responsibilities

Obtain a list of all bank accounts and signatories

Arrange an initial meeting with the management and audit team

Financial Statement Review

Examine balance sheet accounts for proper valuation and disclosure

Review income statement accounts for unusual transactions or variances from expected amounts

Analyze cash flow statements for consistency with other financial statements

Assess the adequacy of footnote disclosures and compliance with accounting standards

Evaluate the reasonableness of significant accounting estimates

Reconcile intercompany transactions and balances

Substantive Testing

Conduct tests of transactions to verify the accuracy of financial records

Perform analytical procedures to identify unexpected fluctuations

Review supporting documentation for selected transactions and balances

Inspect physical assets to confirm existence and condition

Test account reconciliations for completeness and accuracy

Verify cut-off procedures to ensure transactions are recorded in the correct period

Compliance and Regulatory

Assess compliance with tax laws and filing requirements

Review adherence to loan covenants and other contractual agreements

Check for compliance with regulatory reporting and disclosure requirements

Examine documentation for evidence of adherence to the company's internal policies

Verify that minutes of board meetings reflect approval of significant transactions

Confirm that all required licenses and permits are up to date and in compliance

Finalization and Reporting

Summarize audit findings and discuss them with the audit team

Prepare a draft audit report and review it with management for factual accuracy

Adjust financial statements and disclosures based on audit findings

Obtain management representation letter

Present the audit report to the board of directors or audit committee

Issue the final audit report and management letter

Template Library Home

Financial Audit Checklist

Planning and Preparation

Financial Statement Review

Substantive Testing

Compliance and Regulatory

Finalization and Reporting

Use this template in Manifestly

Template Library Home

Financial Audit Checklist

Planning and Preparation

Financial Statement Review

Substantive Testing

Compliance and Regulatory

Finalization and Reporting

Use this template in Manifestly

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