Definition
A PBC list is the checklist an audit firm sends to the client at planning. It names each item the auditor needs, such as the trial balance, bank statements, debt agreements and fixed asset detail, along with who at the client owns it, the due date and the current status.
Why it matters in an audit or review
Late or incomplete client schedules commonly cause budget overruns and missed deadlines. A clear list agreed in advance moves delays out of fieldwork, and it records that management accepted responsibility for providing complete information, a premise of the audit.
Example
Illustrative: a 60-item list for a $15,000,000 manufacturer. By the interim date 42 items are received, 12 are outstanding but not yet due, and 6 are overdue, so the senior escalates the six to the controller.
Common mistakes
- Sending a generic list instead of one tailored to the client and the risks.
- Not setting an owner and date for each item.
- Accepting schedules without checking that they agree to the trial balance.
FAQ
When should the PBC list go to the client?
Send it at or soon after engagement acceptance, and well before year-end fieldwork, so the client has time to prepare balances that tie to the books.
Sources
- AICPA, AU-C Section 210, Terms of Engagement (management’s responsibility to provide access and complete information)
- AICPA, AU-C Section 500, Audit Evidence
- A PBC list is a practice tool and is not defined in the auditing standards.
Definitions paraphrase AICPA and FASB guidance; read the standard itself before relying on a requirement. Example figures are illustrative. This page is guidance, not professional advice. Report an error