itsual Audit Readiness
Overview
Audit readiness is the ongoing state of being able to evidence the numbers. It reduces cost, cycle time, and last-minute fire drills.
When to Use
- First audit or up-tiering of audit requirements
- Year-end preparation
- Reducing audit fees via better preparedness
- Post-audit remediation of control findings
Core Practices
- Maintain a PBC list with owners and due dates
- Keep reconciliations current, not only at year-end
- Document significant judgments and estimates
- Organize contracts, board minutes, and policy files
- Run a dry-run on high-risk areas
- Track and close prior-year findings
Principles
- Auditors test evidence, not intentions
- Surprises during audit damage credibility
- Good readiness is continuous, not a December project
- Clear ownership beats shared confusion
Verification
- PBC tracker is live before fieldwork
- Key balance sheet accounts are reconciled
- Prior findings have remediation status