How to get prepared for EOFY
As we approach the end of the 2016 financial year, those companies that require an audit should be making preparations for the annual audit now.
Take the time to "clean up" your balance sheet - resolve slow paying debtors, clear old stock, prepare for your annual stocktake, clear old fixed asset items, check the status of your bank facilities, ensure your creditors/accruals/employee obligations are up to date. Also, allow time to consider your expected year-end result, and any tax planning required.
What do you need to do for the 30 June annual audit? Normal month-end reporting procedures should be followed but with the inclusion of a more comprehensive file of supporting documents and reconciliations prepared.
In short, the auditor is looking for sufficient appropriate audit evidence to verify and value all material assets and ensure the completeness of liabilities of the business. Also, the auditor needs to see evidence the business remains a going concern. The latter means sighting next year's budget and profit forecast.