PREPARING FOR AN AUDIT

PSO Power Tools Issue 19, Mar. 2005 PREPARING FOR AN AUDIT – Part I An audit is a systematic and independent examination to determine whether activities and related results comply with planned programs. Programs are reviewed as to whether they are implemented effectively and are suitable to achieve the stated objectives. The process of an audit is to verify documentation to ensure that written procedures and policies are followed and all paperwork is completed and records are accurate. Audits should be used as control mechanisms for management, tools for continuous improvements, and assisting to ensure that ongoing systems and controls are operating as intended and required. Audits may be opportunities to find solutions that will assist your organization operate more efficiently. What you can do to prepare for an audit. • Keep up to date with all of your financial records. Keep current. • Call your auditor a couple of months prior to your year-end to ensure that they have you scheduled in a timely manner. This will assist in getting your audit completed on time. • Have your books completed in advance of the scheduled audit date to allow for reviewing of accounts and preparation of the following information. • Review your revenue and expenses and ensure that all deposits and expenses have been properly allocated. {For instance Sport Manitoba Grants must be identified on your statements as Sport Manitoba Grants. A breakdown can ...