1. Close and reconcile the books
Complete bank reconciliations, review suspense and clearing accounts, post routine accruals, and investigate unusual or negative balances before sending the trial balance.
2. Assign one coordinator
Designate a primary contact who can track requests, route questions to the right people, and monitor deadlines. This reduces duplicate requests and inconsistent responses.
3. Build support from the final balances
Schedules should reconcile directly to the final general ledger. Common examples include accounts receivable and payable agings, fixed-asset rollforwards, debt schedules, prepaid expenses, accrued liabilities, and equity activity.
4. Gather significant agreements
Collect new or amended debt agreements, leases, major contracts, grant documents, board minutes, related-party agreements, and other documents that may affect accounting or disclosure.
5. Explain unusual activity early
Flag acquisitions, refinancing, large write-offs, litigation, ownership changes, significant estimates, and nonrecurring transactions. Early discussion creates time to resolve accounting questions before reporting deadlines.
6. Review prior-year findings and adjustments
Confirm that prior adjustments were recorded and that control recommendations were addressed. Recurring differences often create avoidable delays.
7. Agree on timing and availability
Set realistic dates for the trial balance, supporting schedules, confirmations, drafts, and management review. Identify vacations or other periods when key staff will be unavailable.
The goal is readiness, not perfection
A well-prepared audit does not mean every question is answered in advance. It means the records are organized, responsibilities are clear, and potential issues are raised early enough to resolve thoughtfully.
This article provides general information and is not tax, accounting, audit, or legal advice for any specific person or business. Requirements depend on individual facts and circumstances.