Audit Preparation Checklist: 50-Point Guide
Essential 1,500-word checklist covering 50 key items to prepare for external audit including documents, records, and best practices.
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Proper preparation is the key to a smooth, efficient, and cost-effective external audit. Well-prepared companies complete audits faster, incur lower fees, receive fewer audit findings, and maximize value from the engagement.
This practical 50-point checklist covers everything you need to have ready before your auditors arrive. Use it 4-6 weeks before your scheduled audit to ensure you're fully prepared.
We've compiled this based on 37 years of audit experience, identifying the most common preparation gaps and the documents auditors always request.
Financial Records (Items 1-15)
- Trial balance as of year-end date
- General ledger for full fiscal year
- All bank statements (all accounts) for full year
- Bank reconciliations for all accounts at year-end
- Aged accounts receivable schedule with customer details
- Aged accounts payable schedule with vendor details
- Fixed asset register with additions, disposals, depreciation
- Inventory listing with quantities, costs, and locations
- Prepayments and accruals schedules
- Provisions schedules (vacation, gratuity, warranties, etc.)
- Loan and financing agreements with payment schedules
- Equity transactions (share capital, retained earnings movements)
- Inter-company account reconciliations (if part of group)
- Related party transaction register
- Prior year audited financial statements and management letter
Sales & Revenue Documentation (Items 16-22)
- Sales invoices for sample of transactions (largest and random)
- Sales contracts or agreements (for major customers)
- Credit notes and refunds documentation
- Revenue recognition policy documentation
- Deferred revenue schedules (if applicable)
- Customer confirmations of year-end balances (prepare list for auditor to send)
- Bad debt write-off approvals and analysis
Purchases & Expenses (Items 23-29)
- Purchase invoices for sample of transactions
- Major purchase contracts and supplier agreements
- Expense approval hierarchy and authorization matrix
- Travel and expense reimbursement policies
- Lease agreements (property, equipment, vehicles)
- Supplier confirmations of year-end balances (prepare list)
- Expenses accrual calculations and supporting documentation
Payroll & HR (Items 30-35)
- Payroll register for full year
- Employment contracts for management and key staff
- End-of-service gratuity calculations
- Leave provision calculations
- WPS (Wage Protection System) certificates
- Payroll reconciliation to general ledger
Corporate & Legal (Items 36-42)
- Trade license and establishment card (current)
- Articles of association / Memorandum of association
- Shareholder register and ownership structure
- Board of directors minutes for the year
- Shareholder meeting minutes
- Management representation letter (auditor will provide template)
- Subsequent events register (events after year-end)
Tax & Compliance (Items 43-47)
- VAT returns for full year and VAT certificates
- Corporate tax filing (if applicable)
- Customs declarations (for importers)
- Industry-specific regulatory filings (RERA, DHA, DFSA, etc.)
- Business continuity and going concern assessment
Final Preparation (Items 48-50)
- Designate audit liaison person (someone who knows the business and records)
- Prepare workspace for audit team (desk, internet, printing)
- Schedule management meetings (opening meeting, progress updates, closing meeting)
Conclusion
This checklist covers the essential documents and preparations for a typical external audit. Specific industries may have additional requirements (e.g., real estate companies need RERA documents, healthcare needs DHA licenses).
Start preparation early - don't wait until auditors arrive. Well-organized companies often complete audits 30-50% faster than poorly prepared ones.
If you're missing documents or have gaps, address them proactively rather than discovering issues during the audit. Contact your auditor early if you anticipate challenges.
- Complete 50-point checklist organized by category
- Know exactly which documents auditors will request
- Reduce audit time by 30-50% with proper preparation
- Avoid common preparation gaps that delay audits
- Minimize audit fees through efficiency
- Create audit-ready workspace and processes
- Free download - no email gate required
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