The industry experts at Brown Auditing Services in NSW know how to audit accurately and effectively to ensure the best business solutions. We recommend our clients follow due diligence strategies to ensure continuous audit readiness and compliance. Take a look at our top tips for due diligence and our audit checklist for maintaining audit readiness and avoiding financial issues.
The Essence of Due Diligence
External and internal auditing procedures require a high level of attention to detail to review financial documents and organisational history to ensure compliance with laws and regulations. Audits are a normal part of running a business, but preparing for them can be stressful if you don’t regularly follow an audit checklist.
That’s where due diligence comes into play. Essentially, due diligence is an audit, investigation or review used to confirm details and mitigate risk before moving forward with a new investment or a business decision. Due diligence can involve both public information and formal investigations of private details. It also includes employee screening, policy reviews and risk assessments.
As you can see, a lot goes into due diligence, but the more you stick to it, the easier audit preparation will be as you’ll have already done a lot of the work.
Strategies for Effective Due Diligence & Audit Preparation Checklist
Due diligence is one of the key components of audit readiness, and something a dedicated audit and assurance team can help you work through. An audit readiness assessment looks at audit preparation and the standard of financial reporting processes, which makes a difference when preparing for specific tax or legal audits. This due diligence audit checklist will serve as a good starting point when preparing for a financial review or investigation.
Financial Documentation
- General ledger with all fiscal year transactions
- Financial statements and tax files
- Accrual accounts
- Expense approvals
- Revenue and sales data
- Security and lease agreements
- Bank notes, paid bills and checks
- Reconciliation and schedules for asset liability and equity
- Prepaid expenses for fiscal year
- Information on current deposits
Internal Control Documentation
- Organisational charts and employee contracts
- Articles of incorporation and by-laws
- Board meeting minutes
- Transaction flow chart
- Major contracts with suppliers and clients
- Summary of investment activities
- Organisational policies and procedures
Collaboration with Audit & Assurance Experts
To practice due diligence and ensure your organisation remains in good standing, it’s important to look at bringing in audit and assurance experts. A clear, objective approach is required to properly identify the strengths and weaknesses of the organisation’s finances and internal controls. If you’re feeling overwhelmed by due diligence and audit preparation, a reputable industry expert can help.
Discuss Audit Preparation with Brown Auditing Services in NSW
Understanding external and internal auditing procedures will help you complete your audit preparation checklist. Hiring a certified professional who knows how to audit is also very important. You can count on Brown Auditing Services to take care of your audit and assurance needs. Get in touch with us today to schedule audit services at a time that suits you.