Checklist
Audit vs. Review Preparation Checklist
Once the engagement type is decided, the work shifts to gathering records. This checklist shows what to collect for an audit and what to collect for a review, row by row, so management prepares once and hands the accountant a complete package. Read it here, download the editable Word file, or print it.
Corporate board — audit and review document preparation
Organization
Fiscal year covered
Engagement type (audit or review)
Accounting firm
Prepared by
Date
1. How to use this checklist
Each row below is one category of records; the two columns show what to gather for an audit and for a review. Assign every row an owner and a target date, then build one package in a shared folder the accountant can reach — not a stack of answers to individual requests.
2. Confirm which engagement you are actually buying
An audit tests internal controls, confirms balances with banks, attorneys, customers, and vendors, samples source documents, and ends in an opinion. A review is inquiry and analytical procedures only — no control testing, no confirmations, no opinion. Lenders, investors, and insurers often decide for you; when nobody requires an audit, a review is frequently sufficient at a fraction of the cost.
3. Build the package in the order the engagement runs
Start with the ledger, trial balance, chart of accounts, and prior-year file; then banking, revenue, payables, and payroll; then the supporting schedules. The audit column is longer because the auditor traces samples back to source documents, so assemble the file with the evidence trail in mind — not just the totals.
4. Representations and confirmations
In an audit, the auditor requests external confirmations and management or the bookkeeper prepares the contact lists. Both engagements end with a management representation letter, fuller for an audit and shorter for a review. Directors should see the letter before it is signed and the final report when it is issued.
1. Records and reconciliations
| Category | For an audit | For a review |
|---|---|---|
| General financial records | Full general ledger, trial balance, chart of accounts, prior-year audit files | General ledger, trial balance, chart of accounts |
| Banking | Bank statements for all accounts, bank reconciliations, outstanding checks list, deposit detail | Bank statements and reconciliations |
| Cash and revenue | Cash receipts, revenue recognition schedules, customer invoices, deferred revenue schedules | Revenue summaries and key reconciliations |
| Expenses and payables | Vendor invoices, AP aging, expense reports, credit card statements, purchasing policies | AP aging and selected expense summaries |
| Payroll | Payroll registers, W-2/W-3, 941s, PTO accrual schedules, payroll reconciliations | Payroll summaries and key reconciliations |
| Fixed assets | Fixed asset ledger, depreciation schedules, purchase documentation | Fixed asset list and depreciation summary |
| Inventory (if applicable) | Inventory counts, valuation method documentation, cost build-ups, adjustments | Inventory summary and valuation method |
2. Balances, controls, and governance
| Category | For an audit | For a review |
|---|---|---|
| Loans and debt | Loan agreements, amortization schedules, covenant calculations, confirmations | Loan summaries and amortization schedules |
| Investments | Statements, valuation support, realized/unrealized gain schedules | Investment statements |
| Prepaids and accruals | Prepaid schedules, accrual support, contract copies | Prepaid and accrual summaries |
| Internal controls | Policies, procedures, segregation-of-duties documentation | Not required |
| Legal and compliance | Contracts, leases, grant agreements, litigation disclosures | Major contracts or leases only |
| Board and governance | Board minutes, committee minutes, resolutions | Board minutes (limited review) |
| Supporting documentation | Source documents for testing: invoices, receipts, contracts, payroll detail, confirmations | Only documents needed to answer inquiries |
| Management representations | Full management representation letter | Shorter management representation letter |
| Other items | External confirmations (banks, attorneys, customers, vendors) — auditors request, bookkeeper prepares lists | No confirmations required |
Preparation tracker
| Category | Owner | Target date | Ready |
|---|---|---|---|
| General financial records | |||
| Banking | |||
| Revenue | |||
| Expenses and payables | |||
| Payroll | |||
| Fixed assets | |||
| Loans and debt | |||
| Investments | |||
| Prepaids and accruals | |||
| Legal and compliance | |||
| Board and governance | |||
| Representations and confirmations |
Guidance notes
- Ask the accountant what they need before you agree to a start date — late requests are the main driver of overrun and rework.
- A clean, complete package is the cheapest assurance a board will ever buy.
- Watch for scope drift: if a review engagement starts generating audit-level requests, the scope — and the fee — has changed, and the board should know.
- Directors should see the management representation letter before it is signed and the final report when it is issued.
- Keep the same folder structure year over year. The prior-year file is the first thing the accountant asks for.
- This checklist is a board tool, not a substitute for the accountant's own request list or for professional accounting advice.
Before you use this checklist
- Legal counsel review is recommended
- Have qualified legal counsel licensed in your state or jurisdiction review and adapt this material before your board adopts or relies on it.
- Educational model language only
- This is a general model provided for educational purposes. It is not legal, tax, accounting, compensation, or compliance advice, and it does not create an attorney-client or advisory relationship.
- Tailor to your governing documents and law
- Align it with your articles of incorporation, bylaws, applicable state corporate or nonprofit statutes, employment law, and any regulatory requirements that apply to your organization.
- Adopt and record formally
- Approve the process by board vote or resolution, record it in the minutes, keep sensitive material confidential, and review it annually.
This resource is provided for educational purposes only and does not constitute legal, tax, accounting, compensation, or compliance advice, nor does it create an attorney-client or advisory relationship. Adapt it to your organization's governing documents and applicable law, and have qualified legal counsel review it before your board adopts or relies on it.
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