FINANCIAL COMPLIANCE AUDIT CHECKLIST IN THE UNITED KINGDOM: GETTING READY FOR A STRESS-FREE AUDIT SEASON
As audit season approaches, companies in the United Kingdom are reminded of the importance of being prepared to avoid delays and costly overruns. With the Financial Conduct Authority (FCA) increasing its scrutiny on audit firms to improve quality, finance teams are under pressure to ensure they are fully equipped to handle the audit process.
THE IMPORTANCE OF AUDIT READINESS
A lack of audit readiness can lead to poor preparation of required documents, an increase in year-end adjustments, and lengthy discussions with auditors about the quality of documents and deliverables. This can result in delays in providing information to stakeholders on time, causing unwanted consequences and extra costs.
GETTING READY FOR A STRESS-FREE AUDIT SEASON
To help finance teams navigate this challenging period, our Financial Accounting Advisory Services (FAAS) team has collated a comprehensive checklist to ensure a smooth audit process.
MEET WITH AUDITORS TO SET UP TIMELINE AND EXPECTATIONS
- Ensure sufficient resources are allocated during the three stages of audit: planning, fieldwork, and reporting
- Identify a project manager for the audit delivery, who should be highly organized, have gravitas, and be able to build relationships with auditors
- Communicate clearly with auditors on how queries and requests will be handled
PREPARE DOCUMENTATION IN ADVANCE
- Gather information such as accounting policies and process notes
- Discuss any changes to operations or new accounting standards with auditors
- Ensure regular reconciliations within the team and investigate any differences from the previous year
- Prepare documents to support closing balances and review them internally before providing to auditors
GETTING SUPPORT WITH YOUR AUDIT
Our FAAS team offers expert support to help navigate the audit process, including:
FINANCE PLACEMENT
- Our professionals can embed themselves in your business, provide additional skills and expertise, and assist with finance placement, financial reporting advice, and environmental social and governance (ESG) assurance.
FINANCIAL REPORTING ADVISORY
- We provide technical accounting papers, complex accounting questions, and tailored training to employees on new standards.
ESG ASSURANCE
- Our team assists in setting up processes for collating data, provides training on legal and regulatory frameworks, and prepares gap analysis reports to identify areas for improvement.
REDUCING DELAYS AND COSTLY OVERRUNS
By following this checklist and seeking expert support when needed, finance teams can reduce delays and costly overruns, and ensure a smooth audit process. For more guidance and insight, contact Rosamond Murphy or visit our Financial Accounting Advisory Services page.