10 Things an Auditor Will Need for an Initial Audit
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By Aimee Mhaolcraoibhe
If your business is going into an audit it is important to have as much information to hand as possible. Of the necessities any auditor will expect to review during the course of the audit are:
- General ledger.
- This may seem obvious but it is exactly where the auditor starts to determine what all they will need to review.
- Trial Balance.
- The trial balance can be presented in Excel or represented through the accounting program, such as QuickBooks.
- Hard copies of all loans, contracts or leases that show company debt and outgoings.
- If there are any loans outstanding, full copies of the statements of each loan will be required.
- A schedule of depreciation for all assets.
- A copy of every employment contract, merger agreements and articles of incorporation.
- A copy of all bank statements with a list of all bank accounts and signatories.
- The name of the business solicitor and their contact details.
- If there has been any stock issued by the company a register of all the stock trades and ownership of current stock will also be required.
Basically speaking, if you are hit with an audit you must be prepared to show written proof of all incoming and outgoing for the business on an up to date term as well as physical proof to back up the ledger that you have provided which was created between your bookkeeper and your accountant.
Having contact details on hand for any person that may be necessary in the audit including the accountant, bookkeeper, owner and manager would be a good way to ensure that the auditor is able to intake all that they need to in one meeting. The last thing you want is a repeated visit!
This article has only given the high level details of each of item, and for more information you might consider undertaking a professional qualification such as the CIA program.