Year-end audits don't have to be stressful. With proper preparation and systematic documentation, you can streamline the process and ensure compliance with UK GAAP, FRS 102, and Companies Act requirements.
Pre-Audit Preparation (90 Days Before)
Start your preparation well in advance. Companies House requires annual accounts to be filed within 9 months of your financial year-end, but early preparation reduces errors and stress.
- Reconcile all bank accounts and credit card statements
- Review fixed asset registers and depreciation schedules
- Conduct physical inventory counts and reconcile to system records
- Prepare aged receivables and payables reports
- Gather all contracts, leases, and legal agreements
- Document any significant transactions or accounting policy changes
Documentation Requirements
According to HMRC guidelines, businesses must maintain adequate records for at least 6 years. Ensure your documentation is complete, organized, and easily accessible.
- Sales invoices and purchase receipts
- Bank statements and reconciliations
- Payroll records and PAYE submissions
- VAT returns and supporting documentation
- Corporation Tax computations and CT600 forms
- Board minutes and shareholder resolutions
Common Audit Adjustments to Anticipate
Be proactive about areas that typically require adjustment during audits. This includes accruals, prepayments, provisions, and deferred tax calculations.