Most audit delays are not about the numbers. They are about the evidence for the numbers.
Before the auditors arrive, have every balance sheet account reconciled and supported, the trial balance agreed to the draft accounts, and the standard schedules ready: fixed asset movements, receivables and payables ageings, accruals and prepayments, bank confirmations, loans, provisions, payroll and tax. Agree the list, owners and dates with the auditors first.
Auditors issue a prepared-by-client list, often called the PBC list. Ask for it early, agree a date for each item, and give each item an owner in your team. Missing or late items are the main reason fieldwork overruns, and overruns usually mean higher fees.
| Area | What to prepare |
|---|---|
| Trial balance | Final trial balance agreed to the draft accounts, with a mapping |
| Cash | Bank reconciliations for every account at year end, plus bank statements |
| Receivables | Aged debtors agreed to the ledger, after-date receipts, bad debt provision workings |
| Payables | Aged creditors agreed to the ledger, supplier statement reconciliations, accruals listing |
| Fixed assets | Movement schedule (cost and depreciation), additions and disposals with invoices |
| Prepayments and accruals | Schedules with support for each line |
| Stock | Count sheets, valuation and provision for slow-moving items |
| Loans and leases | Lender statements, covenant calculations, lease schedules |
| Payroll | Payroll reconciliation to the ledger and tax filings |
| Tax | Corporation tax computation, sales tax or VAT reconciliations |
| Provisions and contingencies | Workings, legal letters, board minutes |
| Intercompany | Agreed balances with every group company |
Every balance sheet account should have a reconciliation that agrees to the trial balance, is supported by evidence and is signed by a preparer and a reviewer. Unexplained differences found by the auditor take far longer to resolve than ones you found and fixed. See balance sheet reconciliation: process, evidence and sign-off.
Run these tests yourself first, so the results are not a surprise.
UK: many small companies are exempt from audit, but the same schedules support the accounts and the corporation tax return, and lenders often ask for them. US: private companies are often audited at a lender's or investor's request under US GAAS; public companies also have internal control testing, so evidence of reviews during the year matters as much as the year-end schedules.
12 questions on how strong your close controls are. Free to use online.
The Balance Sheet Reconciliation Library covers the balance sheet with nine working papers: a known error blocks sign-off, every supported balance needs an evidence reference and every aged item needs an owner and a next action. Excel, no macros, one-time price.
Start the schedules as part of the final month-end close, and agree the PBC list with the auditors several weeks before fieldwork. Most items can be prepared within the first two to three weeks after year end.
Unreconciled accounts, missing support for accruals and provisions, and late answers to auditor queries. All three are solved by preparation before fieldwork.
The auditor reviews payments made and invoices received after year end to find costs that belonged in the old year but were not accrued. Running the same test yourself before fieldwork lets you post any missing accruals first.
Yes. Keep a standard set of templates and roll them forward each year, so the format is familiar to your team and to the auditors.
Last updated 18 October 2026. General guidance for finance teams; check it against your own policies, systems and local rules.