Checklist for a Clean Audit

Audit preparation shouldn't be too painful if your accounting books are kept up to date.

Here are some helpful tips for a smooth audit.

• Reconcile all bank and credit card accounts.

• Review significant check / distributions in following year to be certain audit year expenses are recorded as expenses.

• Reconcile / Prove all other balance sheet accounts. (normally on accrual basis)

• Contact all professionals (lawyers and accountants) to be certain there are no unrecorded billings related to audit year.

• Review and clean-up receivables and payables.

• Review updated receivables and determine a reasonable reserve for potentially uncollectible receivables.

• Review repairs and maintenance accounts for items that should be recorded as fixed assets.

• Update fixed asset lapsing schedules or computerized fixed asset systems; calculate and book final depreciation entry.

• Make sure credit card charges and utilities are recorded for proper year.

• Be able to explain profit and loss statement variance versus budget and the prior year.

• Some auditors require review signatures on all journal entries and reconciliations - Be certain these are completed.

If you need help with audit prep, schedule a call here!