Preparing for an audit is an ongoing process that unfolds in 5 key phases. From year-round communication to collaborative conferences and meticulous preparation, each step contributes to financial transparency.
- Preparation: Be sure to communicate information with your auditor throughout the year.
- Pre-audit conference: This is an opportunity to meet with the auditors and agree on expectations for the audit.
- Audit prep: This phase entails gathering everything on the auditor’s audit item list in advance.
- Fieldwork: this is where auditors observe and inspect controls, confirm account balances, and sample individual transactions.
- Review: In this phase, there is a management review of the draft audit report.
From proactive communication to management review, each phase ensures your organization is well-prepared.