Audit readiness means agreeing the engagement scope, finalising the books, proving every material balance, organising legal and tax records, documenting estimates and unusual transactions, and assigning one tracker for information requests. The independent auditor still performs the audit and issues any opinion.
1. Confirm who requires what report.
Identify the legal entity, reporting period, stakeholder, applicable financial-reporting framework, deadline and appointed independent auditor. A bank request, statutory audit, regulator filing, grant review and investor due diligence can require different outputs.
Obtain the engagement letter and initial request list. Confirm who will issue and sign any report. This page does not state that TaxPeers is a regulated audit firm; the published service is preparation and coordination.
2. Finalise and control the ledger.
- Freeze the period. Restrict back-dated entries after the close and log approved changes.
- Review the trial balance. Investigate negative, dormant, suspense and unusual balances.
- Complete reconciliations. Prove banks, receivables, payables, inventory, fixed assets, loans, payroll, tax and related parties.
- Post closing entries. Document accruals, prepayments, depreciation, provisions, foreign exchange and other estimates.
- Agree statements to the ledger. Every financial-statement line should map to a trial-balance account and supporting schedule.
3. Build the prepared-by-client file.
| Area | Core schedule | Evidence examples |
|---|---|---|
| Cash | Bank reconciliation for each account. | Statements, confirmations and outstanding-item support. |
| Revenue and receivables | Aged listing and revenue reconciliation. | Contracts, invoices, delivery or completion evidence, receipts and credit notes. |
| Costs and payables | Aged listing and expense analysis. | Supplier invoices, approvals, payment records and unrecorded-liability review. |
| Assets | Inventory and fixed-asset registers. | Counts, purchase invoices, ownership, disposals and valuation support. |
| People and finance | Payroll, loans and end-of-service schedules. | Contracts, payroll output, lender statements and calculations. |
| Tax and legal | Corporate Tax and VAT reconciliations. | Returns, registrations, licences, minutes, ownership and major agreements. |
4. Explain estimates and unusual transactions.
Prepare short memos for material judgements, provisions, impairment, related-party transactions, financing, owner withdrawals, new contracts, restructuring, litigation or events after the reporting date. Link each memo to the ledger and source documents.
A schedule is not complete because its total matches the trial balance. It should also identify the source, preparer, period, calculation method, reviewer and documents that allow another person to reproduce the result.
5. Run one request tracker.
Log the request number, description, owner, due date, status, file link, date supplied and follow-up. Avoid sending different versions through scattered email threads. Mark replaced files clearly and preserve the final evidence set with the issued report or completed review.
Hold a closing meeting for unresolved adjustments, control points and post-audit actions. Assign owners and dates rather than leaving observations in the final email.
Audit-readiness questions
What is audit readiness?
Audit readiness means the accounting records are closed, key balances are reconciled, evidence is organised and the entity can answer information requests without rebuilding the books during the engagement. It does not replace the independent auditor's work or opinion.
What documents are usually prepared for an audit?
Start with the final trial balance, financial statements, general ledger, bank reconciliations, receivable and payable listings, inventory, fixed assets, payroll, loans, tax returns, contracts, ownership records, minutes and support for material or unusual transactions.
Does every UAE company need an audit?
Audit requirements vary by legal form, licensing authority, constitutional documents, regulator, lender, investor and other stakeholder needs. Confirm the exact requirement, reporting framework and who is authorised to issue or sign the report.
Can TaxPeers sign an audit report?
This website does not claim that TaxPeers holds a regulated audit licence or signs audit opinions. Confirm the appointed independent auditor and signing authority before engagement; TaxPeers' published scope is audit-readiness and information coordination.
Scope and source note
This is an operational checklist, not an auditing standard. Corporate Tax record-retention context was reviewed against Federal Tax Authority guidance on 26 August 2026.