If this is your first financial statement audit, the fastest way to stay calm is to lock the request list early and work it in short, focused sprints. This section gives you a practical 30-day plan and a complete prepared-by-client (PBC) request list. It is written for US and UK teams, including those partnering with offshore accountants.
What this covers
- A day-by-day plan to reach audit readiness in 30 days
- A structured PBC index for trial balance, subledgers, bank confirms, legal letters, revenue support, and control narratives
- Clear owners, tie-outs to the GL, and simple status tracking so offshore teams can execute
Key definitions you will use
PBC. Documents and schedules you prepare for auditors.
Tie-out. A check that your schedule totals match the general ledger or subledger.
Cut-off. Making sure transactions sit in the right period.
Evidence. Workbooks, PDFs, and system reports that support balances and disclosures.
The 30-day plan (first-time audit)
Days 1–3: Kickoff and scoping
- Freeze the chart of accounts and export the trial balance for the audit period.
- List your entities, bank accounts, and systems in use.
- Agree on the audit materiality and timeline with your auditor.
- Create one PBC index in a shared folder. Use the template above.
Outputs: PBC index shell, TB export, system inventory, owner list.
Days 4–7: Bank, cash, and governance
- Pull bank statements for the full period and the month after year-end.
- Complete bank reconciliations with aging of outstanding items.
- Prepare the bank confirmation contact list.
- Export board and committee minutes.
Checks: Ending balances tie to GL cash. Reconciling items trace to clearing.
Days 8–11: AR and revenue
- Export the AR aging and tie to the GL.
- Build a customer rollforward.
- Compile top customer statements.
- Assemble sample contracts, revenue recognition memos, and the revenue waterfall.
- For samples, attach proof of delivery or acceptance.
Checks: Aging total equals GL AR. Waterfall totals equal GL revenue and deferrals.
Days 12–15: AP, accruals, and expenses
- Export the AP aging and tie to the GL.
- Pull vendor statements for top balances.
- Build the expense accrual workbook with method and reversals.
- Run cut-off tests for receipts and invoices in the five-day window around period end.
Checks: Accruals tie to contracts and rate cards. Exceptions documented with JEs.
Days 16–19: Inventory/WIP and COGS or project costs
- Export inventory subledger or WIP aging.
- Attach count sheets, variance logs, and the valuation report.
- Prepare standard vs actual analysis and any write-down calculations.
Checks: Subledger equals GL inventory. Reserves follow policy.
Days 20–22: Fixed assets, leases, and payroll
- Produce the FA rollforward, depreciation schedule, and policy.
- Export the lease register with contracts and discount rate memo (ASC 842/IFRS 16).
- Pull payroll registers by period, tax filings, and headcount reconciliation.
Checks: Depreciation equals GL expense. Lease totals match GL and disclosure tables.
Days 23–25: Equity, tax, legal, related parties
- Update cap table and equity rollforward.
- Prepare tax provision workpapers and deferred tax rollforward.
- Request attorney letters and compile the related-party list with transactions.
Checks: Return-to-provision reconciliation complete. Disclosures drafted.
Days 26–28: Controls, narratives, and ITGC
- Finalize control narratives and simple flowcharts for key cycles: cash, revenue, AP, inventory/WIP, FA, payroll, close and reporting.
- Collect IT general controls evidence: user access reviews, change approvals, backup logs.
Checks: Controls mapped to risks. Evidence dated and signed off.
Days 29–30: File hygiene and readiness check
- Confirm every PBC item ties to GL or subledger on a reconciliation tab.
- Lock file names with PBC numbers and versions.
- Close all review notes or track open items with owners and dates.
- Share the full PBC index with your auditor to schedule walkthroughs.
Outputs: Complete PBC folder, exception log, walkthrough calendar.
The PBC list you will send (what auditors expect)
Your request list should, at minimum, include:
- Trial Balance and GL: Frozen TB, GL detail by account, mapping to financial statement lines.
- Bank and Cash: Statements, reconciliations, and bank confirmations.
- Revenue and AR: AR aging, customer statements, sample contracts, revenue waterfall, delivery or acceptance proof.
- AP and Accruals: AP aging, top vendor statements, accrual workbook with methods and reversals.
- Inventory or WIP: Subledger, counts, valuation, and reserve calculations.
- Fixed Assets and Leases: FA rollforward, depreciation, policies, lease register and memos.
- Payroll: Registers by period, filings, headcount reconciliation.
- Equity and Tax: Equity rollforward, cap table, tax provision and deferred tax.
- Legal and Governance: Attorney letters, related-party list, board minutes.
- Controls and ITGC: Control narratives and IT access/change evidence.
- Subsequent Events: Log through the audit report date.
Use the downloadable template to track owners, status, format, and due dates. Keep tie-outs and notes in the same file.
How to work well with offshore teams
- Assign preparer roles offshore and reviewer roles onshore for segregation.
- Share the PBC index with due dates and a single place for evidence.
- Standardize file names:
PBC_06_AR_Aging_FY25.xlsx. - Record cut-off tests and sampling in the workbook itself.
- Hold a 15-minute daily stand-up to unblock issues.
Quick quality gate before you hit send
- Every workbook has a reconciliation tab to GL or subledger.
- All PDFs are searchable and readable.
- Review notes are dated, closed, and next steps are clear.
- Sensitive items are access-restricted to need-to-know groups.
Action-oriented takeaway
If you want a ready folder with your data and dates already filled in, Madras Accountancy will assemble a tailored Audit-Ready in 30 Days: PBC Request List Template for First-Time Audits, run cut-off and sampling tests with your offshore team, and guide your first walkthroughs.
