Audit questions can sometimes feel like they’re written in a language of their own. You might recognise the words but still be unsure what the auditor is trying to ask, or what information will satisfy the request. That can take a lot of time for a busy chief executive, administrator or volunteer treasurer.
At The Accounting Hub, we work directly with independent auditors on behalf of our clients. We’re comfortable with the not-for-profit reporting framework and have worked with enough auditors to have a fair idea of what they expect.
Have your service performance evidence ready
If your Statement of Service Performance is being audited, you need to be able to show that what you say you did, you actually did. Keep supporting records throughout the year so you’re not reconstructing them at year-end.
For more on choosing meaningful measures and keeping the records behind them, read our Service performance reporting blog.
Prepare the reports and supporting schedules together
We prepare the annual reports and supporting schedules with the auditor’s requirements in mind, then share them with the auditor. Getting those workings organised at the start gives the auditor information they can use straight away, rather than having to request everything separately.
Each auditor has their own requests, so some follow-up questions or changes are normal. When changes are requested, we aim to return the updated reports within a couple of working days of receiving the information we need. This helps keep the work moving towards signing.
We can help translate the questions
Audit questionnaires are an important part of the process. They may ask about how transactions are approved, who is responsible for different tasks and what checks the organisation has in place. Some questions can be difficult to interpret if you don’t work with audit terminology regularly.
We can help explain what the auditor is trying to establish and describe your processes in a way that answers the question. The answers still need to reflect what actually happens in your organisation, so we work with your team to confirm the details.
We recently had an auditor asking the CE technical questions directly. The CE didn’t understand what they were asking, so we asked the auditor to direct future questions to us. We could work through the accounting questions and bring the CE in where their input was needed.
Keep the information flowing
Responding promptly to requests for documents helps keep the audit moving. When questions remain unanswered, the auditor may be unable to finish that part of their work. Keep track of outstanding requests and who needs to answer them. If something will take time to gather, let the auditor know.
Where we are coordinating the audit, the auditor can come directly to us with questions. We deal with the accounting matters and work with your team on information about operations, activities and governance.
As much or as little support as you need
We can do as little or as much as you like.
For some clients, we have no involvement with the questionnaires. For others, we meet with the CE to assist. Where we have the information needed, we can also complete the sections relevant to our work ourselves.
We understand what the auditor is asking and can respond in the terms they need. Your team provides the operational knowledge, and we help bring the relevant information together.
We can also deal directly with the auditor on accounting queries, bringing your team in where you need to provide input. You choose the level of support that is useful to you.
Agree the timetable early
Contact your auditor a few months beforehand to agree when the audit will take place. Allow time for the accounts to be prepared, supporting information to be gathered, questions to be answered and the final reports to be approved.
Don’t leave it until two weeks before the due date! Even well-prepared accounts need time to go through the process.
We can help prepare the reports and workings, respond to technical questions and coordinate with your auditor. Your team still has an important role, but you don’t have to work through every audit request on your own.