1. Organize Documentation:
   • Gather all financial documents: balance sheets, income statements, cash flow statements, tax returns, ledgers, and supporting schedules.
   • Ensure documents are complete, accurate, and reconciled with bank statements, invoices, receipts, and other records.
2. Review Accounting Policies and Procedures:
   • Adhere to accounting standards (e.g., GAAP, IFRS) and internal policies.
   • Document changes in accounting policies or estimates, and provide explanations for significant transactions or events.
3. Update Financial Statements:
   • Prepare updated financial statements for the audit period, including comparative statements if applicable.
   • Reconcile intercompany transactions and accounts for consistency across subsidiaries or divisions.
4. Assess Internal Controls:
   • Review internal control procedures over financial reporting (ICFR) for effectiveness and compliance with Sarbanes-Oxley Act (SOX) or other regulations.
   • Identify and address weaknesses or deficiencies in internal controls with remedial action plans.
5. Prepare Audit Schedule and Timeline:
   • Coordinate with auditors to set an audit schedule and timeline that suits both parties.
   • Allow adequate time for preparation, review, and responses to auditor inquiries.

During the Audit

6. Facilitate Auditor Access:
   • Provide auditors access to relevant personnel, facilities, and documentation.
   • Assign a point of contact to address queries and facilitate the audit process.
7. Conduct Audit Procedures:
   • Collaborate with auditors to facilitate internal controls testing and substantive testing of financial transactions.
   • Address auditor requests for additional information or explanations promptly.
8. Perform Inventory and Asset Verification:
   • Conduct physical inventory counts and reconcile records with actual counts.
   • Verify existence, valuation, and ownership of assets, including fixed assets, investments, and intangibles.

9. Review Draft Audit Findings:
   • Review preliminary findings with management and the audit committee.
   • Address discrepancies or issues identified by auditors, providing explanations or corrective actions.
10. Implement Corrective Actions:
    • Act on audit findings by implementing improvements to internal controls and financial reporting processes.
    • Document and monitor the effectiveness of corrective measures.
11. Finalize Financial Statements:
    • Prepare final financial statements incorporating audit adjustments and findings.
    • Ensure disclosures are comprehensive and comply with regulatory requirements.
12. Communicate Audit Results:
    • Present finalized financial statements and audit reports to stakeholders, including board members, investors, and regulators.
    • Address any questions or concerns from audit presentations and provide assurances of compliance and accuracy.