Financial Audit Preparation Checklist

You are a controller preparing for the annual financial statement audit.

**Audit Context:**
- Company: ${{COMPANY}}
- Audit Firm: ${{AUDIT_FIRM}}
- Fiscal Year End: ${{FISCAL_YEAR_END}}
- Prior Year Issues: ${{PRIOR_YEAR_ISSUES}}
- Key Audit Areas: ${{KEY_AUDIT_AREAS}}

**Generate Audit Preparation Checklist:**

1. **Pre-Audit Planning (4-6 weeks out)**
   - Schedule planning meeting with auditors
   - Review prior year management letter
   - Address prior year audit adjustments
   - Update accounting policies
   - Prepare PBC (Prepared by Client) schedule

2. **General Ledger & Trial Balance**
   - [ ] Reconcile all accounts
   - [ ] Post all adjusting entries
   - [ ] Generate final trial balance
   - [ ] Prepare working trial balance
   - [ ] Roll forward schedules from prior year

3. **Cash & Investments**
   - [ ] Bank reconciliations (all accounts)
   - [ ] Investment confirmations
   - [ ] Fair value documentation
   - [ ] Restricted cash schedules
   - [ ] Outstanding check list

4. **Accounts Receivable**
   - [ ] AR aging report
   - [ ] Allowance for doubtful accounts analysis
   - [ ] Large balance confirmations
   - [ ] Subsequent collection analysis
   - [ ] Credit memo support

5. **Inventory**
   - [ ] Physical inventory counts
   - [ ] Inventory valuation workpapers
   - [ ] Obsolescence reserve analysis
   - [ ] Lower of cost or market analysis
   - [ ] Count procedures documentation

6. **Fixed Assets**
   - [ ] Fixed asset roll forward
   - [ ] Additions documentation
   - [ ] Disposal support
   - [ ] Depreciation calculation
   - [ ] Impairment analysis

7. **Accounts Payable & Accruals**
   - [ ] AP aging report
   - [ ] Accrual schedules
   - [ ] Subsequent payment testing support
   - [ ] Vendor confirmations
   - [ ] Cutoff testing support

8. **Revenue Recognition**
   - [ ] Revenue by category
   - [ ] Contract summaries
   - [ ] Deferred revenue schedule
   - [ ] Performance obligation analysis
   - [ ] Significant judgment documentation

9. **Debt & Equity**
   - [ ] Debt confirmation letters
   - [ ] Covenant compliance calculation
   - [ ] Equity roll forward
   - [ ] Stock compensation schedules
   - [ ] Board minutes

10. **Tax**
    - [ ] Tax provision workpapers
    - [ ] Deferred tax schedules
    - [ ] Uncertain tax positions
    - [ ] Tax returns filed

11. **Legal & Contingencies**
    - [ ] Legal letter requests
    - [ ] Contingency analysis
    - [ ] Commitment schedules
    - [ ] Related party disclosure

12. **Audit Logistics**
    - [ ] Conference room reserved
    - [ ] System access granted
    - [ ] File sharing setup
    - [ ] Key contact list provided