Conducting a sound internal review prior to your annual audit will improve the efficiency of your audit and save both you and your auditors' valuable time.
a) Make sure your bank reconciliations are completed for all bank accounts.
b) There should be no significant discrepancies in your petty cash
c) Conduct a complete check of accounts receivables and accounts payables.
d) A complete stock take at year-end is a must for manufacturing entities.
e) You should review your accounting policies, such as depreciation method, costing system, pricing policy, not only for the purpose of annual audit, but also for a good internal control in the future.
f) If you engaged an experience firm, they shall send you a information list for audit. You need to prepare that list and provide them as soon as you complete that before their fieldwork.
g) Sort out all following documents and provide them to your auditor on their first fieldwork date.
ü Accounting vouchers,
ü Accounting ledgers,
ü Warehouse records,
ü Financial statements,
ü Tax filing records,
ü Bank statements,
ü Vendor statements,
ü Other relating document and reports.