A client that arrives at fieldwork with its documents ready saves time for both sides. This guide is written for firms to adapt and send. It organizes the requests by audit area so the client can hand the work to the person who owns each one, and it explains why each item is asked for.
The checklist is a companion to the firm's formal PBC list; use the PBC list template to track status. For clients on QuickBooks, send the QuickBooks cleanup list first.
How to use this checklist
Send it with the engagement letter or at planning, with due dates, and assign one contact at the client. Ask for electronic files in PDF or Excel, named to match the item. Do not wait for "everything." Ask for the first group, general and cash, early so the auditor can start while the client finishes other items.
State the period. Ask for the full year and the period after year-end through the audit date for the items that need subsequent-event testing.
General and governance
- Final trial balance for the year, and the prior year's final audited or issued trial balance
- Draft financial statements, if prepared, and the general ledger detail for the year
- Prior-year financial statements and the auditor's report
- Articles, bylaws or operating agreement and any amendments
- Minutes of owners', board and committee meetings for the year and through the audit date
- Organization chart and list of key personnel
- Chart of accounts and description of the accounting software and any connected systems
- List of related parties and related-party transactions
- Correspondence with regulators, taxing authorities and attorneys about disputes or investigations
- Significant new contracts, and a summary of any unusual transactions during the year
- Management's views of risks, including any known fraud or suspected fraud
The auditor needs these to understand the entity and to assess risk under AU-C 315. See SAS 145 and risk assessment.
Cash
- Bank statements and reconciliations for each account for the last month of the year and for the first month after year-end
- A list of all bank accounts, including those closed during the year, with signers
- Outstanding check and deposit in transit lists
- Authorization to confirm balances with banks, or the contact at each bank
- Cash handling procedures, petty cash and any cash on hand
See bank confirmations and audit confirmations under AU-C 505.
Receivables and revenue
- Accounts receivable aging as of year-end, tied to the ledger
- A listing of customers, with contact details for confirmations
- Subsequent cash receipts after year-end
- Allowance analysis, history of write-offs and any collection issues
- Revenue by product, customer or contract, and a description of how revenue is recognized
- Significant customer contracts, including terms, discounts, rebates, returns and variable consideration
- Credit memos issued after year-end
- Deferred revenue and contract liability listing, if applicable
For revenue, see revenue recognition audit procedures and ASC 606 revenue recognition. The receivables aging and allowance calculator can help the client prepare.
Inventory
- Inventory listing at year-end with quantities, unit costs and extended values, tied to the ledger
- Count sheets or the physical count plan, and the date of the count
- Costing method and support for cost, including recent purchase invoices
- Reserve analysis for slow-moving and obsolete items
- Goods held on consignment, held at third parties or in transit
- Purchases and sales documents for the days before and after year-end
See inventory observation procedures and cutoff testing.
Fixed assets and leases
- Fixed asset register and depreciation schedule, tied to the ledger
- Additions and disposals during the year with invoices, closing statements or sales documents
- Capitalization policy and useful lives
- Lease agreements and a list of leases, with commencement dates, payments and options
- Evidence of any impairment indicators, such as idle assets
See ASC 842 lease accounting and the fixed asset rollforward template.
Payables and accruals
- Accounts payable aging as of year-end, tied to the ledger
- Unpaid bills at the audit date and bills received after year-end
- Disbursements register for the first weeks after year-end
- Accrued expense listings with support, including bonuses, vacation and professional fees
- Vendor statements for the largest vendors
- Legal and professional fee invoices, and a list of attorneys for legal letters
See search for unrecorded liabilities.
Debt, equity and commitments
- Loan agreements, amendments, lender statements and amortization schedules
- Covenant compliance calculations and lender correspondence, including waivers
- Lines of credit with the balance and available amount at year-end
- Guarantees, letters of credit and other commitments
- Stock or membership records, capital contributions, distributions and dividends with approvals
- Equity compensation plans and grants, if any
- Litigation and claims listing and the client's assessment
See asc 450 loss contingencies and going concern under AU-C 570.
Payroll and benefits
- Payroll registers for the year and tax returns filed (Forms 941, 940 and state returns)
- Reconciliation of the payroll register to the ledger
- A listing of employees with pay rates, hire and termination dates
- Benefit plan documents and any retirement plan audit reports or Form 5500
- Bonus, commission and incentive plans
- Accrued payroll and paid time off at year-end
The payroll audit checklist goes into more detail. For retirement plans, see 401(k) audit requirements.
Taxes
- Income tax returns for the prior year and the extension or draft for the current year
- Tax provision workpapers, if the entity records income taxes
- Sales and use tax returns and any notices or audits
- Notices from tax authorities
See ASC 740 income taxes.
Information technology and systems
- A list of systems used for financial reporting, with administrators
- User access lists for the accounting system and bank portals
- Any reports from service organizations relied on, such as payroll or hosted systems
- Backup and change procedures at a level a small entity can describe
Subsequent events and representations
- Minutes and significant events after year-end
- Updated legal letters and lawyer contact details
- The management representation letter, dated as of the date of the auditor's report (AU-C 580). See the management representation letter template.
Tailoring the list
The list above is a full set. Trim it to the client. A small service business with no inventory and no debt does not need those sections, and a long list sent to a small client often produces silence instead of documents. Add items for the industry: contract and job files for a contractor, grant agreements for a nonprofit, membership and reserve records for an association.
For a first-year client, add the prior auditor's contact details, permission to contact them and the prior-year workpapers if the client can authorize access. See first-year audits and opening balances.
After the documents arrive
Receiving a file is not the same as using it. Log the date received, check that each report covers the right period and ties to the trial balance, and tell the client quickly if something is incomplete. A request that sits unanswered for a week because nobody opened the file is a staffing problem, not a client problem. The same applies to answers to questions: give each open question an owner and a date.
Timing guidance for firms
One workable schedule: send the checklist six to eight weeks before year-end work, have the first group due at least two weeks before fieldwork, and expect the subsequent period items last. Track the status of every item in one place, and set a date after which late items move the delivery date.
The audit engagement letter should say that the client is responsible for providing information on time, and that late delivery may affect timing and fees.
Frequently asked questions
What documents does an auditor need from a client?
The trial balance and ledger, bank statements and reconciliations, agings, inventory records, fixed asset schedules, debt agreements, payroll records, minutes, contracts and legal information. The list varies with the client's size and industry.
How far in advance should a client prepare for an audit?
Start before year-end. Reconciliations and schedules take the longest, and a request list at planning helps the client assign work to the right people.
What is a PBC list?
A prepared-by-client list is the auditor's request for the documents and schedules the client must provide. It is tracked by item, owner and due date. See the firm's PBC guide.
Should the client send everything at once?
No. Ask for general and cash items first and the rest in stages, so fieldwork can start without waiting.
What if the client cannot provide an item?
Record why, find out if an alternative source exists, and consider the effect on the audit. A client that cannot provide key records may create a scope limitation.
Sources
- AICPA, AU-C Section 315, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
- AICPA, AU-C Section 505, External Confirmations
- AICPA, AU-C Section 580, Written Representations
- IRS, Employment tax forms 940 and 941: https://www.irs.gov/businesses/small-businesses-self-employed/employment-tax-forms
- US Department of Labor, EBSA, Form 5500 Series: https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500
CORAA prepares ready-to-review audit files for US CPA firms from QuickBooks books; you review and sign. See /us.
Part of CORAA University · Client close and bookkeeping: related guides, calculators and templates.
AU-C references are to AICPA Professional Standards, paraphrased here; read the standard itself before relying on a requirement. This page is guidance, not professional advice. Report an error