Audit Readiness Tips
filed in Audit on Sep.03, 2010
Many not-for-profit organizations are getting ready for their June 30, 2010 audits, and being as prepared as possible will make for a smoother and more efficient audit. Here are some tips to be “audit ready:”
• Make sure that you have all of your assets, liabilities, and net assets accounts reconciled. This should be done a regular basis, so take a look just to be sure.
• Consider any adjusting journal entries that were recorded as a result of your previous audit. Do any of these same scenarios apply? If so, consider if you can make the entry prior to the start of fieldwork.
• Establish an understanding of the expected audit timeline.
- What deadlines are involved?
- When do your auditors need certain information?
- How many days or weeks will they be at your office?
- What accommodations are needed (space, Internet access, etc.)
- When can you expect to receive a draft of the audit?
• Carefully review the listing of requests provided by your auditors. Ask any questions you may have about what they are asking you to provide. If a request seems confusing to you, your auditor will appreciate your questions in advance to ensure you aren’t wasting your time putting together the wrong data.
• Give yourself plenty of time to gather all requests. Waiting until the last minute is stressful, and it doesn’t allow you to address any unexpected issues before your auditors arrive for fieldwork. Having all audit requests completely ready for your auditors will allow them to work as efficiently as possible (and, as a result, be out of your hair as soon as possible!)
• Make yourself as available as possible while your auditor is working in your office. Of course, you’ll still have business to address while they’re at your office, but keeping your schedule as open as possible will keep things running smoothly. The same goes for critical staff – can everyone plan to be available if needed?
It all boils down to communication and preparation! Spending a little extra time working on these things prior to the start of the audit will go a long way in improving the efficiency and quality of your audit process.
Jessica Puckett, CPA, CFE

