For many small and medium-sized businesses, audit season feels stressful — gathering documents, answering endless queries, and worrying about what the auditor will find.
The truth is, most audit challenges come down to preparation. With a bit of forward planning, you can save time, reduce fees, and get valuable insights from the process.
Here’s SC Audit’s simple Audit Readiness Checklist designed for South African SMEs.
Financial Records: Start with Accuracy
- Ensure all reconciliations (bank, debtors, creditors, VAT) are up to date.
- Verify that closing balances match your trial balance and supporting schedules.
- Review asset registers — include purchase dates, depreciation, and disposals.
- Double-check your inventory counts and valuation method (FIFO, weighted average, etc.).
📝 Pro Tip: Set a cut-off date at least 2–3 weeks before year-end to finalise reconciliations.
Governance & Documentation
- Keep signed board minutes and resolutions for key decisions.
- Retain copies of contracts, agreements, and leases — your auditors will request them.
- Ensure policies and procedures are current (especially for revenue, payroll, and expenses).
- If your company has external investors or lenders, ensure all loan agreements are available and signed.
Compliance Checks
- Confirm CIPC annual returns are submitted and paid.
- Ensure tax and VAT filings are up to date with SARS.
- Review B-BBEE certificates, IRP5s, and PAYE reconciliations.
- For non-profits: verify your NPO registration and donor-compliance documentation.
Communication & Planning
Appoint a single audit contact person to liaise with the audit team. Notify your auditors of any major changes (systems, ownership, restructuring, or new subsidiaries).
Provide early access to accounting systems if possible — this speeds up fieldwork.
Bonus: Year-End Readiness Timeline
Timeline – Key Action
- 6–8 weeks before year-end – Begin reconciliations, clean up ledgers
- 4 weeks before – Review trial balance, resolve anomalies
- 2 weeks before – Submit pre-audit information list to auditors
- During audit – Keep communication open; resolve queries daily
- After audit – Review findings, plan improvements
Conclusion
Being audit-ready is not just about compliance — it’s about running a business with clarity, control, and confidence. A well-prepared audit helps management spot inefficiencies, identify risks, and attract investors or funding.
Need help preparing for your next audit? Book a pre-audit consultation with our team. SC Audit is part of the Schoemans Group that includes Schoemans – Chartered Accountants in Cape Town and Acrede – Quality Auditing and Tax Consulting.