Getting Ready for an Audit
Many organizations have to be subjected to regular audit by an external auditor. Although the prospect of a review may fear and anxiety that could be explored, this should not be the case. Knowing in advance what information the inspector may, and organizes the information available before the first meeting with the auditor, will go a long way to ensure a smooth examination and stress free. From the perspective of the auditor, an audit is much easier when customers have well-organized and participated in all the required information and may provide the auditor in time. The inspector may then be work done more efficiently, resulting in fewer hours of work and can lead to lower audit fees. Pending the review, and a month at least to begin before the test, you should ask the examiner a “shopping list” of information you need to deliver.
The ideal monthly financial standard package should contain more information needed by the receiver. Monthly budget should contain information for all cash accounts. These include, for example for details years A / R and A / P listings include dates for the depreciation of fixed assets and the details of prepaid expenses, income and accrued liability accounts.
If the inspector comes, make sure that:
• the right people, which is used as office managers, directors, auditors and accountants
• all records are grouped in advance (see below)
• The documentation is readily available and accessible in an efficient and
• The time to visit
The information contained in the rule relating to external audit include:
• The employee contracts and payroll
• bank statements, deposit books and accounts
• Update General Ledger
• equipment leases, third party agreements (including contractors and consultants)
• For a list of inventory date (if applicable)
• The assets of the subsidiary ledger (if present)
• Documentation of internal controls
• Access to records, contracts, articles, patents, supplementary letters patent, legal correspondence and legal bills
• At the point of access to accounts or systems other person’s computer and the file-and-white
It is important that financial information is readily available. Whether in paper or electronic form, all financial documentation is accurate and logical, for example, in chronological order and presented in alphabetical order. invoices and receipts are available (credit cards and / or leaves are not as receipts or invoices into account). This would be the original plane and train tickets, etc should also include all records over to the site as required by law are carried out. A test can be very beneficial to the organization. You should take this opportunity to ask questions, improve internal controls and ensure that employees are the rules for the use of funds for their organization.