Finance Audit Checklist

General Ledger and Financial Statements Review

• Verify accuracy and completeness of the general ledger.

• Review monthly and year-end financial statements.

• Check for proper classification and recording of transactions.

• Assess the reasonableness of journal entries and adjustments.

Cash and Bank Reconciliations

• Ensure all bank accounts are reconciled monthly.

• Review reconciliation statements for any long-standing unreconciled items.

• Inspect cash handling procedures and petty cash management.

Accounts Receivable and Payable

• Verify aging analysis of accounts receivable and payable.

• Assess adequacy of allowance for doubtful accounts.

• Review procedures for invoice processing and payment.

• Confirm proper authorization for expenditures.

Payroll and Employee Benefits

• Examine payroll records for accuracy and compliance with wage laws.

• Review employee benefits disbursement and record-keeping.

• Inspect adherence to tax withholding and reporting requirements.

Fixed Assets and Depreciation

• Audit physical existence and condition of fixed assets.

• Review depreciation methods and calculations.

• Ensure proper documentation for acquisitions and disposals.

Inventory Management

• Conduct physical inventory counts and compare with records.

• Evaluate adequacy of inventory valuation methods.

• Inspect inventory storage and security measures.

Internal Control Systems

• Review internal control procedures for financial reporting.

• Assess risk management and fraud prevention measures.

• Examine authorization and approval processes.

Compliance with Laws and Regulations

• Verify compliance with relevant financial regulations.

• Review filings and reports submitted to regulatory authorities.

• Inspect adherence to contractual obligations and agreements.

Taxation

• Review tax returns and payments for accuracy.

• Inspect compliance with tax laws and reporting requirements.

• Evaluate documentation supporting tax calculations.

IT Systems and Data Security

• Assess security of financial data and IT systems.

• Review backup and recovery procedures for financial data.

• Examine controls over access to financial systems and data.

Conclusion and Recommendations

• Summarize audit findings and any identified issues.

• Provide recommendations for improvement and corrective actions.

Author: Your Name

Company: Your Company Name