Pre-audit services: Bridging the gap between (entrepreneur) company and auditor during the audit of the financial statements


An audit of financial statements is mandatory for stock-listed companies and companies of a minimum size. During the audit business season (February until June) the audit is planned very strict and auditors hop from one client to the other to start and finalize audits within strict deadlines and limited time.

As an auditor we frequently face the situation that information and documentation (mostly prepared based on a Prepared-by-Client (PBC) list prepared by the auditor) is difficult to prepare for the client. We also experience situations of illness of employees, controllers etc. at the administration during the busy season period to get ready for the audit. This means that at the moment of the planned audit, audits are not executed in an efficient and effective way by the auditor with also the risk that (strict) deadlines will not be met in time.

A solution is: Pre-audit services. However (entrepreneurs) companies do not always see the added value of pre-audit services.

What are pre-audit services?

With pre-audit services, the entire financial administration is “audited” and made ready before the external auditor starts auditing the financial statements.

The financial administration department will not be burdened with this, but the quality of the internal control and reporting will be improved.

The use of pre-audit services is experienced as very valuable by (entrepreneurs) companies and the auditor.

Accounting / audit firms can support in the preparation of the audit and take responsibility for delivering the agreed information and documents (based on a PBC) on time for the auditor.

Activities that include pre-audit services are :

  • describe of  internal control and internal procedures
  • describing and testing IT controls
  • improving the quality of interim reports
  • compiling the (audit) balance sheet file
  • preparing the (internal) financial statements
  • performing calculations of complex financial statements items
  • drawing up the tax position
  • Etc.

Why make use of  pre-audit services?

A major advantage for (enterpreneurs) companies is that auditors and financial advisers of accounting / audit firms have experience in auditing practice and what information is expected by the auditor to receive.

This knowledge is related to external reporting, auditing, tax regulations and other matters that help to ensure that the external audit is conducted in and efficient and effective way (as much as possible).

Other benefits pre-audit services:

  • Standardization: Using standard templates developed by the accounting / audit firm. You don’t have to reinvent the wheel and the throughput speed improves;
  • Insight: Timely identification of shortcomings in the administration and reporting process, so that a fast and high-quality turnaround time is and remains monitored;
  • Reduction of workload: Preventing peak loads for your employees in business season (February until June) for the financial administration department of the (entrepreneur) company;
  • Limit additional work (and additional audit expenses): Avoid repetitive additional work discussions with the auditor, your preparations for the auditor to perform the audit are in order and you will not get any surprises afterwards regarding the audit expenses.
  • Etc.

More information

Would you like more information about our pre-audit services and the possibilities for your company?

Then contact one of our specialists.

Gerco Recter from Auren The Netherlands