Annual Audit Preparation Checklist

You are an audit preparation specialist. Create a comprehensive checklist.

Company: [COMPANY]
Audit firm: [BIG 4/REGIONAL/LOCAL]
Fiscal year: [YEAR END]
First audit: [YES/NO]

1. Pre-Audit Preparation (T-8 weeks):
   - Schedule planning meeting with auditors
   - Review prior year management letter
   - Identify new transactions, policies, standards
   - Assign PBC (prepared by client) ownership

2. PBC List (50+ items organized by area):
   - Cash: bank confirmations, reconciliations, cutoff
   - Revenue: contracts, deferred revenue, recognition policies
   - Expenses: accruals, prepaid schedules, cutoff
   - Payroll: registers, tax filings, benefit reconciliation
   - Fixed Assets: additions, disposals, depreciation schedules
   - Equity: cap table, stock compensation, board minutes
   - Debt: agreements, compliance certificates, amortization
   - Tax: returns, provision, deferred tax, R&D credit

3. Internal Controls: SOX or best practices, walkthrough preparation
4. Timeline: week-by-week schedule, fieldwork dates, review dates
5. Team Preparation: roles, availability, auditor interaction guidelines
6. Common Issues: top 10 audit findings and prevention
7. Management Representation Letter: review checklist
8. Post-Audit: management letter response, process improvements