Agree the scope and document request first
Ask the audit team for its initial information requirements, reporting period and preferred document format. Nominate a coordinator within the business. A shared request list helps distinguish documents already supplied from items that are still being prepared.
Prepare a consistent financial starting point
Provide the trial balance, general ledger and draft financial statements from the same version of the accounts. Explain subsequent adjustments and keep a record of who approved them. Multiple unexplained versions make it harder to connect a supporting schedule to the reported balance.
Reconcile balances and explain old items
Prepare bank reconciliations and supporting schedules for receivables, payables, fixed assets and other significant balances. Explain long-outstanding differences rather than leaving them as unexplained carry-forwards. Keep the supporting calculations available for review.
Connect documents to the transaction
Organise invoices, agreements, approvals and other records using a consistent naming convention. A useful file reference connects the document to its ledger entry or schedule. Access should be controlled, particularly for payroll and commercially sensitive material.
Track questions through to resolution
Use a query log with an owner, response date and evidence reference. If an answer changes an earlier schedule, update the version and explain the change. This is a preparation workflow for the business; it does not replace the auditor’s procedures or determine the audit opinion.
Further reading: ICAI: implementation guides for auditing standards
General information. The appropriate approach depends on your records, circumstances and applicable requirements.