What information will an auditor ask for?The owner or financial officer of the company should establish a list of agreed-upon items with the auditor, while ensuring the time frame is fair to the staff. Here are some things to think about ahead of time.
- Needs and audit procedures to be performed should be discussed with management.
- Determine contact people for specific areas under audit and avoid any potential scheduling conflicts, such as vacations and holidays.
- Establish an “auditor” file for agency correspondence and for copies of new or changed documents about fixed asset additions and disposals, debt agreements, leasing arrangements, lawsuits, complex transactions, technology modifications, and major customers and vendors.
- Reconcile detail to general ledger account totals. For example,
- reconcile all bank accounts
- accounts receivable
- accounts payable
- equipment lists.
- Request templates, copies of prior working papers, and clarification so you can prepare information in a format acceptable to the auditor.