A calm statutory audit begins with organised records, clear reconciliations and timely responses from the business team.
Preparation before the audit
Start by closing the books for the relevant period and reviewing whether all routine entries have been recorded. Reconcile bank accounts, major customer and supplier balances, statutory dues, loans, fixed assets and inventory records. Keep explanations for unusual or year-end entries ready.
Documents that usually need attention
- Trial balance and final ledgers
- Bank statements and reconciliation statements
- Sales, purchase and expense records
- Fixed-asset register and supporting invoices
- Relevant tax returns and statutory challans
A structured digital folder for each subject can reduce repeated requests and helps the audit team follow the evidence efficiently.
Review and respond
Nominate one responsible person to coordinate questions. Record open points, owners and expected response dates. When a correction is needed, document what changed and why. This creates a dependable trail and keeps management informed throughout the engagement.
Professional note: This article provides general information. Applicability may vary according to facts, records and current law. Please obtain professional advice for your specific situation.