Key points
- Most audit delays come from incomplete reconciliations and missing supporting documents.
- Agree a timetable and a document request list with your auditor before year-end.
- Good closing processes — reconciliations, cut-off, provisions — benefit management as much as the audit.
Plan before year-end
A smooth audit starts well before the year closes. Agree the timetable, key dates for draft financial statements and the list of information required. Discuss any significant transactions during the year — acquisitions, new financing, restructuring, large contracts — so accounting can be agreed early.
Reconciliations auditors expect
- Bank reconciliations for all accounts, with balance confirmations
- Receivables and payables ledgers reconciled to the trial balance, with ageing
- GST input tax credit and output tax reconciled with returns and the portal
- TDS deducted and deposited reconciled with statements and Form 26AS / annual information
- Fixed asset register reconciled with the ledger, with additions supported
- Inventory records reconciled with physical counts
Supporting documents
- Significant contracts, loan agreements and sanction letters
- Board and shareholder minutes
- Invoices and approvals for major expenses and capital additions
- Payroll records and statutory payments
- Correspondence on legal cases and tax proceedings
Year-end closing checks
- Cut-off: sales and purchases recorded in the correct period
- Provisions for expenses, warranties and doubtful debts
- Inventory valuation and slow-moving stock review
- Related-party transactions identified and disclosed
- Contingent liabilities and commitments listed
After the audit
Review the auditor's management letter and assign owners and dates for each recommendation. Addressing control observations promptly makes the next audit quicker and strengthens your business.
For general information only. This article summarises the law as generally understood at the time of writing and is not professional advice. Rates, thresholds and due dates change — please consult us before acting.
