If you’re reading this, chances are you’re getting ready for, or are already in the middle of, your company’s first audit. This article outlines how to prepare effectively, what to expect, and how a well-managed audit can benefit your business far beyond compliance.
Why being prepared matters
Audits can be seen as a statutory “tick-box” exercise with limited value beyond the final report. But that couldn’t be further from the truth.
When planned properly, an audit can:
- Strengthen systems, controls and processes
- Improve financial reporting accuracy
- Promote transparency and accountability
An audit offers an opportunity to step back and review how your organisation operates. A fresh, independent perspective from your auditors can help you identify inefficiencies, outdated systems, or potential risks before they become bigger issues.
Recent high-profile audit failures have shown how critical it is for organisations themselves to play an active role in the audit process. The more prepared you are, the higher the quality of your audit and the more value you’ll gain from it.
Do you need an audit?
The first step is determining whether your company or organisation is required to have one.
For most companies, financial thresholds set by law determine the need for an audit. You can find the latest thresholds for companies on the Gov website. Charities and other types of organisations are subject to different statutory criteria.
Beyond legal requirements, an audit may also be necessary if:
- Shareholders request one
- Banks require it for lending or financing arrangements
- Stakeholders want additional assurance on financial information
Understanding these factors early helps you plan your audit timeline effectively.
Understand your financial reporting framework
An audit is built around your financial statements, so it’s essential to understand the financial reporting framework that applies to your organisation.
Being clear on this framework helps you identify areas involving significant judgement or estimates. Recognising these early gives you time to prepare supporting documentation and discuss them with your auditor before the audit begins.
For example, areas such as asset valuations, provisions, or revenue recognition often require management estimates. Early consideration of these matters helps avoid surprises later in the audit.
With UK GAAP updates on the horizon, it’s also wise to assess how upcoming changes might affect your accounts and disclosures.
Plan your team’s time and expertise
Audit readiness depends heavily on the people involved. Make sure your internal team:
- Has availability during key audit phases
- Understands what information will be required
- Possesses (or can access) the right technical expertise
If specialist knowledge is needed, for example, to complete pension or property valuations, address this early so there’s no last-minute rush.
Assigning someone internally to coordinate the audit can make the process far more efficient. This person acts as the main contact between your business and the auditors, keeping communication flowing and ensuring deadlines are met.
It’s also worth reviewing your team’s workload during the audit period. Month-end and year-end reporting often overlap with audit fieldwork, so balancing responsibilities early helps reduce pressure on key staff.
Timing and quality of information
Agree on a clear timetable with your auditors well in advance. This should outline:
- Key milestones
- Deadlines for providing information
- The format and quality expected for each deliverable
Providing complete, well organised information helps minimise follow-up queries and prevents costly overruns. One effective approach is to prepare a detailed “prepared by client” (PBC) list. At Sumer, we offer a digital version that helps clients gather all required documents and schedules in one place. This allows you to track progress internally and ensures your auditor receives everything they need in a single, coordinated submission.
Be prepared for your auditors to apply scrutiny. Regulators are continually raising expectations around audit quality, which means auditors must be increasingly thorough and sceptical.
Keep communication open
Good communication is central to a successful audit. Agree on preferred communication channels (for example, email, phone, Teams, or our digital platform) to make exchanges as smooth as possible.
If there are significant changes in your business – such as restructuring, acquisitions, or major new contracts – let your auditors know as soon as possible. This allows them to understand the implications early and plan their work efficiently.
Likewise, if you encounter challenges during the audit, raise them promptly. Transparency builds trust and helps your auditors support you in resolving issues quickly.
When your auditors share feedback or identify issues, treat it as an opportunity to strengthen your systems and controls, not as criticism. A good audit will finish with a debrief meeting with your team and auditors to discuss lessons learned and plan improvements for next year.
We’re here to help
Our Sumer Audit team is here to support you at every step – helping you understand your audit requirements, set realistic timelines, manage deliverables, and build stronger systems for the future.
We work closely with businesses of all sizes, from first-time audits for growing companies to complex group audits, helping each one navigate the process smoothly and efficiently. Our focus is on adding genuine value to your business by highlighting opportunities for improvement along the way.
For help preparing for your audit, get in touch with one of our specialist Sumer Audit team members by visiting the Business Champion closest to you.
