Audit Readiness

Audit readiness by FinEx

Establish Governance & Ownership

• Assign clear roles and responsibilities (process owners, audit coordinators)
• Define escalation paths and sign-off authorities
• Align SSC and corporate audit teams

Understand Audit Scope & Requirements

• Review prior audit findings and management letters
• Align with internal/external auditors on scope, materiality, and timelines
• Create an audit calendar with milestones and responsibilities

Process & Control Documentation

• Maintain updated process maps, narratives, and risk-control matrices
• Ensure policies and procedures reflect current operations and regulations
• Link controls to specific transactions and audit-relevant reports

Standardize and Centralize Audit-Related Data

• Central repository for audit evidence, reconciliations, and reports
• Use checklists for key areas (e.g. AR, AP, Fixed Assets, GL, Inventory)
• Define document retention and naming conventions

Prepare for Key Areas of Focus

• Revenue recognition, intercompany transactions, accruals
• Tax provisioning, leases, asset capitalization
• Journal entries, cut-off procedures, and manual adjustments

Perform Pre-Audit Self-Assessments

• Test controls internally (maker-checker, system access, approvals)
• Perform dry runs of reconciliations and key audit schedules
• Address known gaps or prior-year audit issues proactively

Reconciliations & Supporting Documentation

• Ensure timely and complete reconciliations for balance sheet and subledgers
• Provide clear, traceable audit trails for transactions and adjustments
• Maintain backup documentation for estimates, judgments, and provisions

Auditor Coordination & Fieldwork Support

• Central point of contact in SSC for auditor queries and evidence requests
• Track status of PBC (Prepared By Client) list items
• Facilitate walkthroughs and system demos as needed

Embed Controls & Automation

• Automate recurring audit deliverables where possible (e.g. depreciation, FX revaluation)
• Use workflow tools to monitor control performance and exception handling
• Implement change logs for key systems and processes

Continuous Monitoring & Audit Readiness Culture

• Periodic internal audits or walkthroughs
• Post-audit reviews and lessons learned sessions
• Promote a culture of control awareness and documentation discipline