Preparing for an Independent Audit: 15 Documents Management Should Prepare

The biggest time-waster in an independent audit is the audit team arriving on site and waiting for documents. The list below brings together the documents requested from almost every company in an independent audit. Starting to prepare them before year end shortens fieldwork, reduces the risk of additional fees and ensures the report is delivered on time.

General and legal documents

1. Articles of association and current trade registry gazettes: capital, ownership structure and authorised signatories.
2. Board of directors and general assembly resolutions: all resolutions for the period, especially on dividend distribution, capital increases and significant investments.
3. Significant contracts: loan, lease, sales and purchase, licence and service agreements.
4. List of litigation for lawyers' confirmation: cases to which the company is a party and their estimated outcomes.

Accounting records

5. Year-end trial balance and general ledger: with closing entries posted.
6. List of bank accounts and bank statements: with bank details so that the auditor can send confirmations directly.
7. Account reconciliations: reconciliations with significant customers and suppliers.
8. Fixed asset register and depreciation calculation: including additions and disposals during the period.
9. Stock count sheets and inventory valuation: the count should ideally be attended by the auditor.
10. Foreign exchange revaluation and rediscount calculations: for foreign-currency items and notes with maturities.

Tax and payroll

11. Tax returns and assessments: corporate tax, VAT and withholding tax returns.
12. Social security declarations and payroll summaries.
13. Provision for employee severance pay: with the employee list, start dates and salaries. You can see the estimated amount with our severance pay calculator.

Related parties and the prior period

14. List of related parties and transactions: transactions with shareholders, group companies and managers; an interest calculation for current accounts with shareholders.
15. Prior-year audit report and management letter: together with the actions taken on previous findings.

How should preparation be planned?

• Share the list with your auditor at least two months before year end and assign an owner to each document.
• Collect the documents in a shared folder with controlled access.
• Reduce the year-end workload by carrying out an interim audit during the year.

This list is a general starting point. Additional documents may be requested depending on your industry and reporting framework.