Financial Statements: Ensure that all primary financial statements (balance sheet, income statement, cash flow statement) are complete and up-to-date.
Supporting Documents: Prepare all reconciliations for bank accounts, receivables, and payables. This includes bank statements, supplier statements, and receivables ledgers.
Trial Balance: Make sure the trial balance is accurate and up-to-date for the period under audit.
General Ledger: Have a detailed general ledger ready, showing all financial transactions for the period.
Purpose: These records form the core of the audit, so ensuring accuracy here is essential for an efficient process.
Leases and Rental Agreements: Collect all documents related to office leases, equipment rentals, and property leases.
Loan Agreements: Have detailed records of loan agreements, including interest rates, repayment schedules, and balances.
Client and Supplier Contracts: Gather any ongoing or new client and supplier agreements, particularly those impacting revenue recognition or long-term obligations.
Purpose: Clear organisation of contractual obligations helps the auditor understand future cash flows, liabilities, and contractual obligations.
Employee Records: Ensure payroll records are complete and consistent, including payroll schedules and employee contracts.
Payroll Taxes and Deductions: Prepare records for PAYE, National Insurance, pension contributions, and other deductions.
Timesheets and Bonuses: If applicable, make sure timesheets, overtime calculations, and bonus records are ready.
Purpose: Auditors will assess payroll for accuracy and compliance with HMRC requirements, so having these organised is crucial.
Corporation Tax Returns: Provide copies of corporation tax filings, tax computation, and any correspondence with HMRC.
VAT Records: Make sure VAT records are up-to-date and reconciled with reported figures, including invoices, receipts, and VAT return copies.
Deferred Taxes and Provisions: If applicable, provide records of deferred tax assets or liabilities.
Purpose: These records help ensure your compliance with UK tax regulations and are a key part of audit testing.
Inventory Count Records: Prepare records of recent stock takes and inventories, including reconciliation reports for discrepancies.
Inventory Valuation Policies: Document your inventory valuation methods (e.g., FIFO, LIFO, or average cost) and provide supporting schedules.
Work in Progress: For companies with WIP inventory, ensure accurate records are maintained.
Purpose: Inventory is a significant asset for many companies, and clear, accurate records are necessary to verify its value.
Asset List: Compile a list of all fixed assets with acquisition dates, asset costs, and depreciation schedules.
Disposal and Additions Records: Document any disposals or acquisitions of assets within the audit period.
Depreciation Policies: Outline your depreciation methods and ensure they align with your accounting policies.
Purpose: The auditor will check the accuracy of asset valuations and compliance with UK accounting standards.
Bank Statements: Ensure all bank statements for the audit period are collected and reconciled.
Outstanding Transactions: Provide details of any outstanding cheques or deposits that have not yet cleared.
Credit Facilities: If you have overdrafts, loans, or other facilities, prepare statements and reconciliation documents.
Purpose: Accurate bank reconciliation helps confirm cash positions and identify any unusual transactions.
Receivables Ledger: Reconcile your receivables ledger with your general ledger and confirm balances with key customers if possible.
Provision for Bad Debts: Review and adjust any provision for bad debts as required.
Payables Ledger: Ensure that your payables ledger is reconciled and that you have records for all outstanding liabilities.
Purpose: Accurate receivables and payables figures are essential for verifying revenue and expense accounts.
Minutes of Meetings: Collect all relevant minutes from management and board meetings, especially those relating to financial decisions.
Resolutions and Approvals: Ensure any resolutions that affect financial reporting are documented, such as dividend declarations or changes in accounting policies.
Purpose: Meeting minutes often provide context for financial decisions and major changes in the business, which the auditor will want to review.
Accounting Policies Document: Provide an overview of your accounting policies, including revenue recognition, inventory valuation, and depreciation.
Policy Changes: Highlight any changes in accounting policies during the audit period.
Purpose: Auditors will review these policies to ensure consistency with UK accounting standards and identify any adjustments needed.
Related Party Transactions: Document and prepare disclosures of any transactions with related parties, such as shareholders or directors.
Contingent Liabilities: If there are potential liabilities or pending legal issues, ensure they are documented and disclosed.
Risk Assessments: Summarise any risk assessments conducted and provide supporting documentation for major risks.
Purpose: These documents help the auditor identify potential compliance or disclosure issues.
Assign Responsibilities: Designate team members for specific sections of the checklist to ensure accountability and efficiency.
Conduct a Pre-Audit Review: Perform an internal review of key documents and financial records to address any issues proactively.
Communicate with Your Auditor: Ensure regular communication with your auditor regarding any unique circumstances, new developments, or questions.
