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Top Tips for Preparing for an Audit
There are so many advantages of planning and preparing for the audit process earlier on and also throughout the year. It preparation can be very complicated and time-consuming and if you didn't prepare you might find the whole process to be very stressful. 

You will also find the process tiring and overwhelming if you don't follow the instructions given by the auditor. Read some top tips for preparing for it and keep everything involving the process in check. 

Be sure to plan ahead because the day of the check is not the time to look for documents otherwise the process will be painful and very long for you.
Everybody wants to have a successful process but they don't know exactly where to start. Break down the process and make it easier by being very ready.

Here are some top tips for preparing for an audit.

1) Document all you can.
This will help you retrieve records easily to avoid wasting time searching when the auditor needs them. Be prepared with backup documents for any item that needs significant reconciling. You should not wait for the auditor to come then start looking for the requested documents, have them ready, clearly documented and well organised.

2) Communication.
Communicate with the auditor throughout the year and share any new information you may think is important to keep the statements up to date. This also includes asking questions where you don't understand before planning for an item. You should also use this opportunity to get to know your auditor better.

3) Check and prepare all the items on the auditor's checklist before the fieldwork kicks off. Some of this things include; Internal financial statements, Equity certificates and the General ledger with a detailed report.

4) If anything that goes against the policies placed happens, make sure to document how it happened and how it was solved. Doing this shows you as the management were aware that it happened and will save you a lot of trouble later.

5) Number the items carefully to avoid any confusion and misinformation. This will help save you and the auditors time. It is also very effective to help the auditor find what they are looking for so make the documents neat and understandable.

6) To avoid any delays when the team shows up, give the auditor the trial balance one week in advance. Try also to guess and predict the auditor's questions and have your answers ready. This is one of the major tips for preparing for the process because it will help you feel ready.

7) Comply with the new IRS regulations in all ways.
Some of the commonly asked items by the auditors include
Monthly bank statements
Detailed listings of accounts receivable balances
Standard forms for you to prepare and will be later mailed to the bank by the auditor.
Opinion letters

8) Have pre-audit meetings with your team, board and auditor to set the records straight and have everybody on the same page. Write a letter to address any issues immediately after it happens.

9) Give the auditors time to do their work without any sort interruption but make yourself and your team including others like the actuary, trustee and the record available.

10) Be ready to explain any questions asked by the auditor including terms of the plan and also the operation of the plan. This is to mean that team responsible should be able to explain anything in the documents.

Thoroughly Preparing for the process by following the top tips provided above will definitely help you be in a better position when the day comes.

For more information, visit: Linghams Chartered Accountants.