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 :
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:
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