What is the best way for a Controller to prepare for the company's first external audit?

If you'd like, let me know:

• What industry is your company in?
• Is this a financial statement audit or a specialized review?

I can provide a tailored PBC checklist or focus on high-risk areas specific to your business model.

1. Get the books completely audit-ready

Before the auditors arrive, make sure:

• All balance-sheet accounts are reconciled to supporting detail.
• Bank, credit-card, AR, AP, payroll, debt, fixed assets, and intercompany accounts tie out.
• The subledger agrees to the general ledger.
• All material reconciling items are investigated and resolved.
• The year-end close is substantially complete.
• Suspense, clearing, and miscellaneous accounts are cleaned up.
• Retained earnings/equity rolls forward correctly.
• The trial balance agrees to the financial statements.

Don't give the auditors a moving target. A first audit becomes much harder when the GL continues changing materially throughout fieldwork.

2. Build an audit binder/data room

Create a logical folder structure before the PBC requests start coming in.

For example:

For every significant balance, ideally you should be able to answer:

What is the balance? How was it calculated? What supports it? Who reviewed it? That mindset is extremely useful during a first audit.

3. Identify the high-risk accounting areas early

Don't wait for the auditor to discover your complicated accounting.

Make a list of transactions and balances involving significant judgment, such as:

• Revenue recognition
• Stock-based compensation
• Business combinations
• Debt and financing arrangements
• Leases
• Goodwill/intangibles
• Inventory valuation
• Bad-debt reserves
• Accrued liabilities
• Deferred revenue
• Income taxes
• Related-party transactions
• Going-concern considerations
• Litigation/contingencies
• Fair-value measurements

Prepare an accounting memo for each material or complicated issue explaining:

1. The facts
2. The applicable accounting guidance
3. The company's analysis
4. The conclusion
5. Supporting documentation

This can save substantial time because auditors otherwise have to reconstruct the reasoning themselves.

4. Pay particular attention to opening balances

Because this is the first audit, opening balances are especially important. Auditing standards specifically require additional consideration in an initial audit to obtain sufficient appropriate evidence concerning opening balances.Default+1

Therefore, collect support for the beginning-of-period balances—not just the current-year activity.

For example:

• Prior-year financial statements
• Prior tax returns
• Bank statements
• Debt agreements
• Fixed-asset records
• Historical AR/AP aging
• Inventory records
• Equity records
• Major contracts
• Acquisition documentation
• Prior accounting workpapers, if available

If there was a predecessor accounting firm, determine what historical documentation can legitimately be obtained and shared with the new auditors.

5. Document your internal controls

Even if you're a relatively small private company, don't assume the auditor only cares about the financial statements.

Prepare basic documentation for key processes:

• Order-to-cash
• Procure-to-pay
• Payroll
• Treasury/cash
• Fixed assets
• Inventory
• Financial close
• Journal entries
• Revenue
• Equity
• IT/access controls

For each important control, document:

Who performs it → What they do → How often → What evidence they retain → Who reviews it

For example:

Controller prepares monthly bank reconciliation → CFO reviews and signs off → reconciliation and evidence of review retained in monthly close folder. Auditors evaluate controls relevant to financial reporting and may test both their design and operation, particularly when an internal-control audit is involved.Default+1

6. Do your own "mock audit"

This is probably the highest-value exercise you can do.

Take your trial balance and pretend you're the auditor.

For every material account, ask:

"If I were an independent auditor, what evidence would I need to prove this balance?" Then assemble it.

For example:

This exercise will expose gaps before the auditor does.

7. Review cutoff carefully

First audits frequently generate questions around whether transactions belong in the correct period.

Do extra work around:

• Revenue immediately before/after year-end
• Shipments
• Customer invoices
• Vendor invoices received after year-end
• Goods received but not invoiced
• Payroll/accruals
• Credit memos
• Returns
• Prepayments
• Large journal entries around year-end

Have your own cutoff analysis ready rather than reconstructing it after the auditor asks.

8. Prepare the PBC tracker

Don't manage audit requests through email alone.

Use a tracker like:

| Request | Owner | Due | Status | Location

--- | --- | --- | --- | --- | --- 1 | Bank confirmations | Controller | 10/5 | Complete | Data room 2 | AR aging | AR Manager | 10/5 | Complete | Data room 3 | Revenue contracts | Revenue Lead | 10/7 | Open | — 4 | Debt agreements | Controller | 10/7 | Open | —

Have one person—ideally the Controller—own the tracker.

Also establish a rule that business owners don't independently send auditors documents without the accounting team knowing what was provided.

9. Meet with the auditors before fieldwork

Have a kickoff meeting covering:

• Audit timeline
• Year-end close date
• PBC list
• Materiality
• Significant accounts
• Key accounting judgments
• Expected sampling
• Confirmations
• Inventory observation
• Management representation letter
• Audit adjustments
• Communication process
• Expected deliverables
• Who on your team owns each area

AICPA guidance specifically recommends planning ahead and communicating with everyone involved in the audit process.AICPA & CIMA

10. Tell the auditors about problems early

This is one of the most important Controller lessons.

If you discover:

• A reconciliation error
• A missing contract
• An incorrect accounting treatment
• A control that wasn't performed
• A significant prior-period error
• A potential related-party transaction
• An unusual transaction

Tell the auditors early.

Don't spend three weeks trying to make an issue disappear before mentioning it. The auditor will eventually ask, and late surprises can disrupt the entire audit.

A good 90-day preparation plan

90–60 days before fieldwork

• Lock down accounting policies.
• Identify significant accounting judgments.
• Perform a balance-sheet cleanup.
• Document key processes and controls.
• Identify historical/opening-balance gaps.
• Discuss unusual transactions with the auditors.
• Establish the PBC structure.

60–30 days before fieldwork

• Complete account reconciliations.
• Prepare accounting memos.
• Assemble supporting schedules.
• Perform preliminary analytical review.
• Test key controls internally.
• Resolve known deficiencies.
• Prepare confirmation information.

30–0 days

• Complete the close.
• Tie the financial statements to the GL.
• Perform your mock audit.
• Finalize PBC documentation.
• Review subsequent events.
• Make sure everyone understands who communicates with the auditors.

During the audit

The Controller should function as the audit project manager, not merely the person answering accounting questions.

Track every request, control document flow, coordinate subject-matter experts, review proposed adjustments, and keep management informed of emerging issues.

The goal isn't to make the company look perfect. It's to make the company's accounting, judgments, controls, and supporting evidence understandable and traceable.

One particularly useful principle is: don't prepare for the PBC list; prepare for the auditor's questions. The PBC list is only the starting point.

The goal isn't to make the company look perfect. It's to make the company's accounting, judgments, controls, and supporting evidence understandable and traceable.

One particularly useful principle is: don't prepare for the PBC list; prepare for the auditor's questions. The PBC list is only the starting point.

1. Conduct a Readiness Assessment (Gap Analysis)
   • Review your current financial statements, accounting policies, and internal controls to identify any gaps against GAAP or IFRS standards.
   • Pinpoint high-risk areas like revenue recognition, inventory valuation, and complex debt or equity instruments.
2. Establish the Audit Timeline and Team
   • Partner with the audit firm to set a clear project plan, including interim testing, year-end fieldwork dates, and a final delivery deadline.
   • Assign internal roles and responsibilities so every ledger, reconciliation, and PBC (Provided by Client) item has a clear owner.
3. Clean Up the General Ledger and Balance Sheet
   • Perform a rigorous, formal review of all balance sheet accounts and ensure every single one has an up-to-date, signed-off reconciliation.
   • Clear out old open items in clearing accounts, unapplied cash, and suspense accounts well before the auditors arrive.
4. Prepare the PBC (Provided by Client) Request List
   • Anticipate the auditor's data requests—such as bank confirmations, fixed asset schedules, payroll reports, and major contract samples.
   • Create a centralized, secure digital data room (like Google Drive, SharePoint, or an audit portal) and organize files using a clean, intuitive folder structure that mirrors the PBC list.
5. Document Internal Controls and Processes
   • Write down key financial workflows, especially around cash disbursements, revenue generation, journal entry approvals, and financial close procedures.
   • Ensure segregation of duties is documented, or compensating controls are in place where the team is small.
6. Draft Financial Statements and Disclosures Early
   • Do not wait for the auditors to draft your financial statements or footnote disclosures; put together a pro-forma draft complete with statements of cash flows and comprehensive footnotes.
   • Reconcile all footnote numbers back to the trial balance ahead of time.
7. Establish Clear Communication Protocols
   • Designate a single point of contact (usually yourself or a senior accounting manager) to field auditor questions to prevent conflicting information or message fatigue across departments.
   • Schedule weekly check-ins during fieldwork to review open items, roadblocks, and emerging issues.

Would you like me to help you draft a sample PBC (Provided by Client) checklist or focus on best practices for managing the auditor relationship during fieldwork?

A simple tracker should include:

2. Clean up the books before auditors arrive

Auditors will spend significant time testing account balances. Make sure:

• All balance sheet accounts are reconciled.
• Bank reconciliations are complete and reviewed.
• Intercompany balances agree.
• Old reconciling items are investigated and cleared.
• Accruals, prepaid expenses, fixed assets, debt, leases, and equity accounts have supporting schedules.
• The trial balance ties to the financial statements.

A first audit often exposes gaps where companies have the accounting entries but lack documentation proving why those entries are correct.Deloitte

3. Build an organized audit support package

Create a structured audit folder (preferably with consistent naming conventions):

• Trial balance and general ledger detail
• Financial statements and disclosures
• Account reconciliations
• Bank statements and confirmations
• Customer/vendor contracts
• Debt agreements
• Lease agreements
• Fixed asset listings
• Payroll records
• Tax filings
• Board minutes and major transaction approvals

The key question: “If an auditor asks for support, can someone find it within minutes?”

4. Document accounting policies and significant judgments

First-time audits frequently uncover areas where accounting decisions were made informally.

Document policies for areas such as:

• Revenue recognition
• Expense capitalization
• Inventory valuation
• Bad debt reserves
• Stock compensation
• Leases
• Software development costs
• Estimates and reserves

Also prepare a list of unusual or significant transactions during the year and the accounting conclusions reached.

5. Evaluate internal controls

Auditors will want to understand how financial information is created and protected.

Review:

• Who can create, approve, and post journal entries
• User access to accounting systems
• Approval workflows
• Segregation of duties
• Close procedures
• Review controls

If one person performs multiple roles (common in smaller companies), document compensating controls such as management review.Deloitte

6. Prepare the accounting team for auditor interaction

Coach the team to:

• Respond promptly and accurately.
• Provide complete answers rather than partial information.
• Avoid guessing—say “I’ll confirm and follow up.”
• Maintain a log of documents provided and auditor questions.
• Escalate potential issues early.

A collaborative relationship with auditors generally leads to a smoother engagement.IFAC

7. Perform a mock audit or readiness review

Before the auditors arrive:

• Select major accounts and trace transactions from the ledger to supporting documents.
• Review large or unusual journal entries.
• Test whether reconciliations are complete.
• Confirm that disclosures are supported.
• Identify gaps and assign remediation owners.

This is especially valuable for a first audit because it reveals issues before they become audit findings.✨ Acrux Advisory

8. Plan for the audit findings process

The first audit is not only about receiving an opinion; it is also about improving the finance function.

Prepare to:

• Track proposed adjustments.
• Document management decisions on audit recommendations.
• Assign owners and deadlines for remediation.
• Communicate significant issues to executives or the audit committee.

A practical 60–90 day preparation timeline

90+ days before fieldwork

• Select audit firm and confirm scope.
• Hold planning meeting.
• Identify high-risk accounting areas.
• Begin reconciliation cleanup.

60 days before fieldwork

• Complete major schedules.
• Draft financial statements.
• Gather contracts and supporting documentation.
• Review controls.

30 days before fieldwork

• Finalize PBC (Prepared By Client) list.
• Resolve open accounting issues.
• Perform mock audit procedures.

During fieldwork

• Maintain daily communication.
• Track requests and deadlines.
• Resolve questions quickly.
• Document decisions.

The strongest first audits usually come from a Controller who creates a repeatable process: clean books + organized evidence + documented controls + proactive communication.close-flow.net+1

If you'd like to dive deeper, let me know:

• What industry is your company in?
• What framework are you reporting under (GAAP, IFRS, or cash basis)?
• What is your timeline until fieldwork begins?

2. Get the balance sheet "audit ready"

This is probably the Controller's highest-value task.

For every material balance-sheet account, prepare a reconciliation to the general ledger and supporting documentation. At minimum:

• Cash → bank statements and bank reconciliations
• A/R → aging, subsequent receipts, allowance methodology
• Inventory → physical counts, costing, reserves
• Fixed assets → additions, disposals, depreciation
• Prepaids → supporting invoices and amortization schedules
• A/P/accruals → vendor support and subsequent payments
• Debt → agreements and amortization schedules
• Leases → agreements and lease calculations
• Equity → capitalization table, board approvals, stock issuances
• Taxes → returns, provisions, and supporting calculations

A good rule is: if an auditor points to a GL balance, you should be able to explain it and produce support within minutes.

3. Document your accounting policies

Create a short accounting-policy manual covering areas such as:

• Revenue recognition
• Expense capitalization
• Fixed assets
• Inventory
• Bad debts
• Accrued expenses
• Stock-based compensation
• Leases
• Debt
• Foreign currency, if applicable
• Income taxes
• Related parties
• Estimates and reserves

Don't wait for the auditor to discover that the company has been applying an accounting policy inconsistently.

4. Map your key processes and controls

Document the major transaction cycles:

Order-to-cash → procure-to-pay → payroll → treasury → fixed assets → inventory → financial close → equity/debt.

For each process, identify:

• Who performs it
• What evidence is created
• Who reviews/approves it
• What could go wrong
• What control prevents or detects the problem
• How often the control operates

This becomes especially important if you're subject to an internal-control audit. Under PCAOB standards, auditors take a risk-based, top-down approach from financial-statement risks to significant accounts, assertions, and relevant controls.Default+1

5. Test your own controls before the auditors do

Don't merely document controls—operate and test them.

For example:

Monthly bank reconciliation → prepared by Accountant → reviewed by Controller → reviewer signs/dates → reconciling items investigated. Then take several months of reconciliations and ask:

• Was it performed?
• Was it performed on time?
• Is there evidence of review?
• Were exceptions investigated?
• Is the reviewer sufficiently independent?

Fix deficiencies before the audit. A control that exists on paper but wasn't actually performed is a common source of unpleasant audit findings.

6. Build an audit PBC binder/data room

Create a structured folder before the auditors arrive:

Use consistent file names and make sure the support ties exactly to the financial statements and GL.

7. Perform a "mock audit"

This is one of the best things a first-time Controller can do.

Take the top 10–20 material/risky accounts and pretend you're the auditor. For each one ask:

"How would I prove this balance is complete, accurate, properly valued, properly classified, and actually exists?"

Also perform:

• Analytical review of P&L fluctuations
• Gross-margin analysis
• Working-capital analysis
• Search for unrecorded liabilities
• Subsequent-events review
• Revenue cutoff testing
• A/R collectibility review
• Accrual completeness review
• Related-party review

The objective is to identify surprises while you still have time to fix them.

8. Pay special attention to estimates and unusual transactions

Auditors tend to spend disproportionate time on areas involving judgment.

Flag things such as:

• Revenue arrangements
• Significant contracts
• Customer credits/refunds
• Bad-debt reserves
• Inventory reserves
• Bonuses
• Litigation
• Stock compensation
• Impairments
• Acquisitions
• Related-party transactions
• Debt modifications
• Large or unusual journal entries

Have a written memo explaining the company's accounting conclusion and the evidence supporting it.

9. Establish a clean monthly close

A first audit becomes dramatically easier if the Controller can demonstrate that the company has a disciplined close process.

Ideally have:

• Close checklist
• Account reconciliations
• Review/sign-off
• Journal-entry approval
• Variance analysis
• Financial-statement review
• Documented cutoff procedures

The auditor is ultimately looking for sufficient appropriate evidence, not just a spreadsheet that "looks right."AICPA & CIMA

10. Manage the auditors proactively

Designate one person—usually the Controller—as the audit coordinator.

Have a tracker like:

Don't let auditors receive five different versions of the same information from five employees.

And when you don't know the answer, don't guess. Tell the auditor you'll investigate and come back with documentation.

The Controller's "first audit" priority order

If time is limited, I'd prioritize it this way:

1. Make sure the financial statements and trial balance are correct.
2. Reconcile every material balance-sheet account.
3. Identify and resolve unusual transactions and accounting judgments.
4. Document key accounting policies.
5. Document and test key controls.
6. Build the PBC package/data room.
7. Perform a mock audit and close remaining gaps.
8. Establish a disciplined communication process with the auditors.

The biggest mistake is trying to make the company look audit-ready. The better objective is to make the underlying accounting provable. Effective internal control is ultimately about reasonable assurance that financial reporting is reliable and that the financial statements are prepared appropriately—not simply having policies sitting in a binder.Default

If this is a private company preparing for its first GAAP financial-statement audit, I can also give you a practical 90-day first-audit readiness checklist, including exactly what the Controller should prepare week by week.

Here is the best way to prepare, broken down into a clear, phased roadmap:

1. Pre-Audit Foundation & Planning (Months 1–3)

• Select the Audit Firm: Choose a CPA firm that has experience in your specific industry. Ensure the engagement letter, timeline, and deliverables list (the PBC list—Provided by Client) are locked in early.
• Establish the Audit Committee/Leadership Link: Set clear lines of communication between the external auditors, executive leadership, and the board (if applicable). Decide who the single point of contact (SPOC) will be—ideally, it's you or a dedicated accounting manager, but department heads should never talk to auditors unvetted.
• Set the Timeline: Work backward from your target issuance date. Build in heavy buffers for messy data, unexpected adjustments, and team burnout.

2. Clean Up and Reconcile the Balance Sheet (Months 2–4)

• Reconcile Every Account: Every single balance sheet account—cash, prepaid expenses, fixed assets, accrued liabilities, and equity—needs a current, dated reconciliation with backup documentation attached. No exceptions.
• Bank & Subledger Confirmations: Ensure cash, debt, and AR/AP subledgers tie out cleanly to the general ledger control accounts.
• Fix Historical Anomalies: Clean up old reconciling items, lingering suspense accounts, and misclassified expenses. Auditors will look closely at unusual or aged items sitting on the balance sheet.

3. Documentation & Revenue Recognition (Months 3–5)

• Review Accounting Policies: Document your key accounting policies, especially around revenue recognition (under ASC 606 if US GAAP), inventory valuation, and capitalization.
• Gather Contract Backups: Pull major customer contracts, vendor agreements, and lease agreements (ASC 842). Auditors will sample these to test cut-offs and obligations.
• Roll-forward Schedules: Build clean Excel roll-forwards for Fixed Assets (depreciation schedules), Prepaids (amortization), and Accruals. Make sure the beginning balance + additions - deductions = ending balance matches the GL.

4. Internal Controls & Process Walkthroughs (Month 4–5)

• Document Processes: Write down how transactions flow from initiation to financial statement posting. Auditors will conduct "walkthroughs"—picking a transaction and tracing it from start to finish.
• Segregation of Duties: Identify any control gaps where one person has too much access (e.g., someone who can create a vendor and approve payments). Put compensating controls in place if your team is small.
• Access Controls: Restrict financial system permissions so only authorized personnel can post journal entries or adjust master data.

5. Final Dry Run & PBC Delivery (1 Month Before Fieldwork)

• Populate the PBC Room: Create a secure, organized data room (using a platform like ShareFile or Box ) structured neatly by audit request item numbers. Clean organization builds immediate auditor confidence.
• Draft the Financial Statements: Prepare draft financial statements and footnotes ahead of time rather than waiting for the auditors to write or request them.
• Mock Review: Review your own PBC items as if you were the auditor. Ask yourself: Does this file tell a complete, self-explanatory story?

If you'd like, let me know:

• What industry is your company in?
• Are you reporting under US GAAP, IFRS, or cash-basis?
• Roughly how large is your transaction volume/team?

I can give you a more tailored PBC checklist or focus on specific revenue/inventory complexities you might face.

Create a list of gaps and assign:

• Owner
• Due date
• Required evidence
• Status

This becomes the Controller’s audit project plan.John W. Halloran CPA, P.C.

2. Meet with the audit firm early

Schedule a planning meeting with the external auditors before fieldwork.

Align on:

• Audit scope and reporting framework (for example, GAAP basis, statutory requirements)
• Audit timeline
• Key contacts
• Materiality expectations
• Areas of focus
• Prepared-by-Client (PBC) request list
• Data delivery methods

Avoid preparing for a generic audit; prepare for the specific procedures your audit firm plans to perform.John W. Halloran CPA, P.C.

3. Clean up the accounting records

Auditors will start with the general ledger and trial balance. Make sure:

Balance sheet accounts

• Bank accounts are reconciled
• Accounts receivable aging agrees to the GL
• Accounts payable aging agrees to the GL
• Accruals are supported and reviewed
• Prepaids are amortized correctly
• Fixed assets reconcile to the asset register
• Intercompany balances are resolved

Income statement accounts

• Revenue is supported and properly cut off
• Major expense accounts have explanations for unusual fluctuations
• Significant estimates have documented calculations

Monthly reconciliation discipline is one of the strongest indicators of audit readiness.Close Flow

4. Build an organized audit evidence repository

Create a folder structure before the audit begins, such as:

Every file should have:

• Clear naming conventions
• Period/date covered
• Preparer and reviewer information
• Supporting documentation attached

Auditors should not have to hunt through email chains to find evidence.

5. Strengthen journal entry controls

Expect auditors to test manual entries.

Make sure:

• Entries have explanations
• Supporting calculations are attached
• Preparers and approvers are different people where possible
• Non-routine entries receive additional review
• Journal entry reports can be exported easily

Close Flow## 6. Document key processes and controls

Prepare short process narratives for areas such as:

• Revenue cycle
• Purchasing and payables
• Payroll
• Cash management
• Month-end close
• Financial reporting

Document:

• Who performs each step
• Who reviews it
• What evidence proves the control occurred

Auditors are evaluating not only whether numbers are correct, but whether the company has a reliable process for producing them.Audit and Advisory Services

7. Identify high-risk areas before auditors do

Review transactions that may receive extra attention:

• New contracts
• Debt agreements
• Equity issuances
• Acquisitions
• Large one-time expenses
• Revenue arrangements
• Related-party transactions
• Significant estimates

Prepare explanations and supporting documents ahead of time.

8. Assign a single audit coordinator

The Controller should usually act as the central point of contact.

Maintain an audit tracker:

This prevents duplicate work and keeps leadership informed.Virtas Partners

9. Prepare the accounting team for auditor interaction

Make sure staff understand:

• Answer questions directly and factually
• Do not guess—follow up if unsure
• Provide requested support, not unnecessary extra information
• Escalate judgment questions to the Controller

A calm, organized finance team builds auditor confidence.

10. Plan for the post-audit period

A first audit often produces improvement items. After completion:

• Review audit adjustments
• Document root causes
• Create remediation plans
• Assign owners and deadlines
• Update procedures before the next audit

A successful first audit is not just a clean opinion—it is establishing a stronger finance function going forward.

Practical timeline

90–120 days before fieldwork

• Select audit team contacts
• Review prior financial statements
• Identify accounting issues
• Begin reconciliations and documentation

30–60 days before fieldwork

• Complete major schedules
• Draft financial statements
• Resolve open accounting items
• Finalize PBC materials

During fieldwork

• Track requests daily
• Respond quickly
• Document decisions
• Escalate issues early

After audit

• Implement improvements
• Update controls
• Maintain audit-ready files monthly

The biggest mindset shift for a first-time Controller is: an audit is not a document collection exercise; it is a test of whether the company’s financial reporting process can be trusted.

• Perform complete balance sheet reconciliations for every single asset and liability account as of the cutoff date. Cash, accounts receivable, inventory, and prepaid expenses need rock-solid backup schedules.
• Review intercompany accounts to ensure they eliminate correctly if there are multiple entities.
• Investigate and clear out any long-standing, unexplained suspense or clearing accounts.

1. Formalize Accounting Policies and Estimates

• Document key accounting policies (revenue recognition, capitalization thresholds, inventory valuation) so the auditors understand your methodology.
• Support all significant management estimates —like the allowance for doubtful accounts or warranty reserves—with documented, defensible calculation logic and historical data.

1. Organize the Audit Trail and Documentation

• Create a secure, centralized shared drive structured logically by audit cycle (e.g., Cash, Revenue, Payroll, Fixed Assets) so you can easily grant and revoke auditor access.
• Ensure every journal entry has a standard description, proper calculation backup, and dual-authorization sign-off.
• Keep physical or digital copies of all key contracts (leases, debt agreements, major customer/vendor contracts) readily accessible.

1. Prepare the Financial Statements and Disclosures

• Draft the balance sheet, income statement, statement of cash flows, and statement of stockholders' equity along with a comprehensive first draft of the footnotes.
• Check that your financial statements comply with GAAP or IFRS requirements relevant to your industry.

1. Manage the Auditor Relationship

• Designate one primary point of contact (ideally you or a senior accounting manager) to funnel all communication and document requests to prevent conflicting answers.
• Schedule weekly check-in calls during the active audit to review progress, unblock bottlenecks, and manage emerging issues.

If you'd like, let me know:

• What industry is your company in?
• What accounting software are you using?
• Have you already selected an audit firm?

I can provide tailored checklists or specific risks to watch out for based on your setup.