The Dos
Do Plan Collaboratively and Get the Request List Early
When it comes to audit success, planning is everything. Meet with your auditor well before year-end to go over timelines, changes from the past year, and what documents they will need.
Ask for the “Prepared by Client” (PBC) list as soon as possible. This list outlines all the materials the auditors will request. Getting it early gives your team time to gather, check, and organize everything before the fieldwork starts—saving time and reducing stress later on.
Do Designate a Single, Empowered Point of Contact
To keep communications clear and efficient, appoint one person as the main contact for the audit. This individual will manage requests, track submissions, and coordinate communication between your team and the auditors.
Crucially, this person must have the authority to access data and documents across departments—whether from HR, IT, or Legal—so requests are handled promptly without bottlenecks.
Do Tackle the “Heavy-Lift” Items First
Some audit areas take more time than others—especially those involving complex or hard-to-value assets like private investments or Level 3 assets.
Start reviewing these tricky areas early. Prepare detailed valuation packages and supporting documentation to explain your assumptions and methods. Giving auditors time to analyze these early reduces delays as reporting deadlines approach.
Do Embrace Year-Round Audit Readiness
Don’t wait until year-end to start preparing. Treat each month-end close like a “mini-audit.” Building good practices into your everyday workflow will ensure everything is organized and ready when audit season arrives.
Adopt smart habits such as:
Reconciling every balance sheet account monthly.
Documenting all approvals, reviews, and adjustments (because “if it’s not documented, it didn’t happen”).
Tracking large or unusual reconciling items.
Confirming that last year’s audit issues were fully resolved.
Consistent practices make for a seamless audit process and fewer surprises.
The Don’ts
Don’t Treat Your Auditor as an Adversary — Make Them an Ally
Many teams see auditors as a regulatory burden rather than partners. That view misses the point. Auditors are experts who can help you navigate complex accounting and reporting standards.
Build a strong relationship early and stay in touch throughout the year, especially during major events like mergers, new affiliates, or legal changes. Clear communication not only prevents surprises but also helps both parties work more effectively.
Don’t Submit Schedules Blindly — Double-Check Everything
Never hand over schedules or reports to auditors before confirming they align with your general ledger or trial balance. A mismatch—like a partner contribution schedule that doesn’t reconcile—can waste time, increase costs, and raise unnecessary questions.
Always review every document carefully before submission to keep the audit focused and efficient.
The Audit as a Catalyst for Improvement
A smooth audit depends on preparation, communication, and a proactive mindset. An audit doesn’t have to be stressful—it can strengthen your financial processes, improve transparency, and enhance organizational trust.
Instead of asking, “How do we get through this audit?”, ask, “How can this audit make us stronger?” When viewed strategically, your audit isn’t just about compliance—it’s a powerful opportunity for growth and insight.
Sources:
PKF O’Connor Davies – 7 Practical Steps to Prepare for a Seamless Year-End Audit
Vikram Deshpande – Best Practices for a Year-End Audit
GG Advisors LLC – Eight Tips for a Smoother Year-End Audit Process
Sikich – How to Prepare for an Audit: Financial Confidence Through Year-Round Readiness
Wei Wei & Co – Proven Practices to Simplify Your Year-End Audit in 2025