Your first company audit? Start with these 7 records.

First, confirm what your company actually needs

Before collecting documents, confirm the financial year, the engagement and any reporting deadline. An audit involves an auditor forming an opinion on financial statements; preparing those statements is a separate task.

SSM provides exemption criteria for certain private companies. Eligibility needs a company-specific assessment: do not assume that being a small business automatically removes the need for an audit.

References: IAASB: ISA 700 — the auditor’s opinion · SSM: Audit exemption for private companies

The seven record groups to organise

Use this as a starting checklist, then adapt it to the list your auditor requests. Some records will not apply to your business; others may need more detail.

• Accounting file: trial balance, general ledger and draft financial statements, where available.
• Bank and financing: statements, reconciliations, loan schedules and facility agreements.
• Sales and customers: invoices, credit notes, customer balances and receipts after year end.
• Purchases and suppliers: invoices, supplier balances, payment records and expense schedules.
• Assets and inventory: fixed-asset register, purchase or disposal records and stock-count information where relevant.
• Payroll and tax: payroll summaries, tax computations, submitted returns and relevant correspondence.
• Company and agreements: relevant resolutions, ownership information, major contracts and related-party balances.

Make your folder easy for someone else to understand

Create one main folder for the financial year and a subfolder for each record group. Use filenames that identify the document and period, such as Bank-Reconciliation-March. Keep the original accounting export separate from later revisions.

Add a short index with the owner of each folder and a note about outstanding items. A small amount of structure makes it easier to explain what has changed when more than one person is preparing the file.

Check the connections between the numbers

Before sending the file, compare each schedule with the trial balance. If a bank balance, customer listing or asset schedule does not agree, record the difference and the work still needed. Avoid silently replacing one version with another.

Separate an explanation from its evidence. A note saying that a customer paid is more useful when the receipt can also be located. Ask how the auditor would like documents transferred; agree a suitable channel before sharing confidential records.

Bring these questions to your first discussion

Your preparation is useful even if some records are incomplete. A clear list of gaps gives the team something specific to discuss.

• Which records are required for our business and financial year?
• Who will answer queries, and who approves adjustments?
• Are any stock counts, confirmations or other arrangements needed?
• What information is missing, and how might that affect timing?