Financial auditing is an objective and impartial method of reviewing the financial reports and financial reporting procedures of an entity. A checklist for financial auditing is prepared to help determine and list out the tasks and processes that are required to conduct the audit. This audit is generally carried out by an impartial committee within the company.
6 Things to Include in a Financial Audit Checklist
1: Budgets and Financial Statements
Two of the most important things that need to be included in a financial audit checklist are budget and financial statements. Any kind of business generally has a set of budgets and financial statements that allow them to track and assess the company’s financial health. Budgets for planned income and expenses should be set at the beginning of each year and tracked on a monthly basis. The important financial statements include balance sheet, income statement, owners ‘ equity statement, and cash flow statement.
2: Revenue and Sale Costs
In the general ledger and accompanying financial statements, accounting personnel need to conduct tests of revenue and cost-of-sales entries. Before these entries can be made, they need to be validated by proving inventory shipment or service delivery. This will allow businesses to report regular long-term contract sales. Cost-of-sales entries should be properly timed and checked for accuracy with associated revenue entries.
3: Trial Balance
The “trial balance” of a company includes the values of all accounts as a timely snapshot. Audit procedures should confirm the balances with a particular focus on reconciling the major ones. Documentation need to be issued in the form of detailed reports in support of the balance of accounts receivable and accounts payable. To confirm accuracy throughout the year, inventory and fixed assets should be confirmed by item, quantity and value, with periodic cycle counts verified.
4: Transaction Documentation
All the financial transactions of the organization need to be documented in the general ledger. Each transaction, whether captured in manual form or with an electronic system, should be regularly recorded with sufficient information to establish who created it and for what reason.
5: Accrual Accounts
In order to establish balance sheet reserves for pending payments, accruals need to be in place. Generally this includes items such as the amounts that are due for the wages that are awaiting processing, sick-day earnings, bonuses, commission agreements, etc. Accruals must also be financed for property, sales or income-due state, local and federal taxes, as legally required.
6: Bylaws and Meeting Minutes
In order to verify compliance with all directives, bylaws adopted by the board of directors for the benefit of business and stakeholders should be documented and reviewed. It is also important to review the minutes from executive meetings and ensure that sufficient action has been taken to address any issues raised during these meetings.
8+ Financial Audit Checklist Template in PDF | DOC
1. Internal Financial Audit Checklist Template
A checklist is a device that helps to list out all those items that need to be done or accomplished within a given period. A financial audit checklist accordingly is used to list the things that need to be done to conduct the audit properly. If you want to develop this checklist for your organization too, then you need to download this audit template.
2. Financial Audit Checklist Template
A financial audit checklist is a tool that is used to determine the list of tasks that need to be accomplished in order to make sure that the audit has been carried out properly. You can create this checklist quite easily with the help of this professional checklist template. This template comes with a ready-made file that is very simple and easy to use.
3. Financial Audit Checklist Example
A financial audit is an unbiased, objective assessment of the financial reports and financial reporting procedures of an organization or a business. A checklist for the same is the tool that lists out the items for the process. With this checklist example template, you can get access to a similar file that can help you out greatly with your task.
4. Financial Audit Checklist Template in PDF
Conducting a financial audit is not an easy task. Similarly creating the checklist for the same is not easy either. That is why we are here with our blank checklist template. This template comes with a ready-made blank checklist that you can use for conducting the financial audit for your organization. To use this file, you need to download it in PDF format.
5. Financial Assessment Audit Checklist Template
The main purpose of a financial audit checklist is to help make a list of the tasks that need to be done to carry out the auditing process. So if you want to develop this checklist for the financial audit of your organization, then you need to make use of this simple checklist template. This template is compatible with all kinds of operating systems.
6. External Financial Audit Checklist Template
A financial audit can be of two types. This includes the internal financial audit and external financial audit. Accordingly, the checklist for either is different from the other. This sample checklist template is to be used when you need to create an external financial audit checklist. All you need to do is download the template in PDF format.
7. Monthly Financial Audit Checklist Template
A financial audit can be carried out on a monthly or yearly basis, depending on the needs and requirements of the company. Are you having trouble with the making of the checklist for the monthly financial audit of your organization? Then you are in the right place! No need to worry anymore as you are getting access to this free checklist template for this exact task.
8. School Financial Audit Checklist Template
A financial audit can be carried out in any type of organization or institution including schools and colleges. If you need to do the financial audit of your school, then this sample audit checklist is the perfect thing for you. This template has been specially designed to help you make the checklist for financial audits of schools.
9. Financial Control Audit Checklist Template
With this Financial Control Audit Checklist Template, you can get your hands on a model of a financial audit checklist that you can use as a reference guide to making the checklist for the financial audit for your organization. The template comes with original and suggestive headings and content that have been written by professional writers.