Skip to main content

Audit Readiness Checklist 2026

Walk into your audit prepared, not scrambling

A structured checklist to prepare your organisation for internal and external audits — financial controls assessment, documentation review, and compliance validation in one framework.

  • Control environment and governance assessment
  • Financial records and documentation review
  • Internal controls testing framework
  • Compliance requirements by country (UAE, SA, Jordan)
  • Risk assessment and remediation planning
  • Timeline and resource planning

Pre-Audit Preparation Framework

Phase 1: Control Environment Assessment (4-6 weeks before audit)

  • Review organizational policies and procedures documentation
  • Assess board and management oversight mechanisms
  • Evaluate tone at the top regarding ethical conduct
  • Identify any significant changes in personnel or systems
  • Document segregation of duties across finance function
  • Review prior audit findings and remediation status

Phase 2: Financial Records Review (3-4 weeks before audit)

  • Reconcile all balance sheet accounts
  • Verify inventory counts and cutoff procedures
  • Review revenue recognition policies and transactions
  • Assess depreciation schedules and asset valuations
  • Reconcile bank statements and identify timing differences
  • Review loan agreements and debt covenants

Phase 3: Internal Controls Testing (2-3 weeks before audit)

  • Test purchase-to-payment controls and authorization
  • Verify revenue-to-collection controls
  • Test expense recognition and approval processes
  • Assess IT controls and system access logs
  • Review journal entry procedures and approval hierarchies
  • Test payroll controls and compliance

Phase 4: Compliance Validation (1-2 weeks before audit)

  • Review compliance with local tax regulations
  • Verify regulatory filings and submissions
  • Assess labor law compliance and employee records
  • Review insurance policies and coverage
  • Verify license renewals and regulatory certifications
  • Document any non-compliance issues found

Country-Specific Audit Requirements

UAE Audit Standards

  • Compliance with UAE Federal Accounting Standards
  • VAT record retention (5+ years) if registered
  • Labor Law compliance documentation
  • Transfer pricing documentation if applicable
  • Zakat and Awqaf reporting requirements

Saudi Arabia Audit Standards

  • Compliance with Saudi Standards for Auditing (SSA)
  • ZAKAT audit requirements if applicable
  • Vision 2030 compliance metrics documentation
  • Saudization percentage tracking and reporting
  • Transfer pricing documentation per GAAFTA guidelines

Jordan Audit Standards

  • Compliance with Jordanian Accounting Standards (JAS)
  • Tax authority audit trail documentation
  • Customs and tariff compliance records
  • Social security contribution verification
  • Foreign exchange transaction documentation

Documentation Checklist for Auditors

Financial statements & records: General ledger, trial balance, balance sheet, income statement, cash flow statement, accounting policy documentation

Asset documentation: Fixed asset register with acquisitions/disposals, depreciation schedules, asset verification count sheets, insurance coverage

Receivables & collections: Accounts receivable ageing analysis, bad debt reserve calculation, collection procedures documentation, credit policy evidence

Inventory & operations: Inventory count sheets, obsolescence analysis, production cost allocations, cut-off procedures documentation

Payables & liabilities: Accounts payable ageing, vendor reconciliations, accrual calculations, debt agreements, loan disbursement records

Compliance & governance: Board minutes, policies and procedures, employee handbooks, regulatory licences, tax filing proof, insurance policies

Need Help Preparing?

Our audit readiness specialists can conduct a pre-audit review and help remediate any gaps in your controls and documentation. See our financial consultation services for the full scope.

Schedule Your Pre-Audit Review
Free consultation — let's discuss your next project Book Now →