I began my career in public accounting at a small to mid-sized firm, performing audits across a diverse range of industries. This early exposure provided a comprehensive view of the audit lifecycle—from planning and risk assessment to fieldwork and final reporting— and significantly strengthened my technical accounting foundation. Just as importantly, it instilled core professional competencies, including discipline, communication, and adaptability. These skills are essential not only for auditors but also for corporate finance professionals responsible for supporting the audit process.
As my career progressed within the corporate sector, I assumed responsibility for leading audits for both private and public companies. Through these experiences, I’ve learned that each environment presents its own complexities, driven by regulatory expectations, organizational structure, and transaction volume. While the overarching objective remains consistent (achieving an unqualified audit opinion), the path to that outcome varies widely. Success depends not only on technical accuracy but also on effective planning, coordination, and resource management across both internal teams and external auditors.
Although summer is typically associated with vacations and a natural slowdown in certain business activities, it presents an ideal opportunity to begin planning for the upcoming audit cycle. Early audit planning is often underestimated, but it can have a significant impact on overall audit efficiency and effectiveness. Initiating the process well in advance, such as during July, helps establish clear expectations, align stakeholders, and minimize disruptions during peak periods, particularly around year-end close and final fieldwork.
It’s also important that the right participants are included in these early planning discussions. From the corporate side, this should include individuals directly responsible for financial reporting, key accounting areas, and internal controls. From the audit firm side, participation should extend beyond engagement leadership to managers and senior team members who’ll be actively involved in executing the audit.
I recommend circulating a detailed agenda in advance of these meetings to ensure all participants are prepared and discussions remain focused on key areas.
Additionally, planning agendas should include a review of these six components:
Begin with a thorough review of the prior year’s audit findings report or equivalent communication. This includes an evaluation of identified audit risks, internal control observations, and any deficiencies noted during the prior engagement.
Be sure to pay particular attention to areas that required significant audit effort or involved complex accounting judgments. Revisiting management estimates, such as reserves, fair value measurements, or impairment analyses, provides an opportunity to assess whether methodologies remain appropriate or require refinement. Addressing these considerations early can also reduce audit scrutiny and potential adjustments in the current year.
Providing auditors with a comprehensive update on the business is critical to an effective audit. This update should include year-todate financial performance, key drivers of results, and expectations for the remainder of the fiscal year.
Significant business developments, such as acquisitions, divestitures, restructurings, or changes in strategic direction, should be clearly communicated. Additionally, any changes in leadership, organizational structure, or operational processes should be noted, as they may influence audit scope and risk assessment.
Equally important is communicating changes in accounting policies, adoption of new standards, or modifications to financial reporting processes. Having these early discussions around technical accounting matters allow auditors to provide input and avoid surprises during fieldwork.
Understanding the composition of the external audit team is essential for effective coordination. Changes in engagement partners, managers, or key team members can impact continuity and institutional knowledge.
Ensuring that new team members are appropriately onboarded and familiar with the organization’s operations, systems, and historical audit issues helps mitigate inefficiencies. Open communication regarding roles and responsibilities on both sides fosters accountability and strengthens the working relationship.
Obtaining the prepared by client (PBC) list early in the planning process is a critical component of audit readiness. The PBC list outlines the documentation and schedules required to support audit procedures and forms the foundation for coordinating deliverables.
Early visibility into PBC requirements enables finance teams to allocate resources effectively, identify areas requiring specialized expertise, and integrate audit-related tasks into the broader financial close calendar. Given the competing demands placed on finance teams, proactive planning in this area is essential to avoid bottlenecks and last-minute requests.
Interim audit procedures play a key role in reducing the workload during year-end fieldwork. To ensure both internal and external resources are utilized efficiently, teams should align on the timing and scope of interim testing.
Interim procedures typically include walkthroughs of internal controls, testing of key controls over financial reporting, and preliminary substantive testing in selected areas. Completing this work earlier in the year allows for timely identification and remediation of control deficiencies (if any) and reduces pressure during the year-end audit.
Establishing clear expectations around year-end fieldwork is also critical to achieving a timely audit. This includes aligning on key milestones, such as the financial close process, delivery of PBC items, and issuance of financial statements.
Teams should also consider personnel availability, particularly during peak periods, as well as external reporting deadlines. Developing a detailed, mutually agreed-upon timeline minimizes the risk of delays and ensures accountability for deliverables.
All in all, these six components are only part of the equation to having successful audits. Beyond the early summer months, here are some external auditor-recommended best practices for corporate controllers to incorporate into their everyday workflow throughout the year.
Overall, effective audit execution is the result of deliberate planning, clear communication, and disciplined processes. By initiating audit planning during the summer months and proactively engaging with external auditors, organizations can establish alignment, optimize resource utilization, and reduce operational disruption.
This structured and forward-looking approach not only enhances audit efficiency but also strengthens the overall quality and reliability of financial reporting. Ultimately, audit planning should be viewed not merely as a procedural requirement but as a strategic opportunity to improve processes, enhance transparency, and reinforce the integrity of the organization’s financial information.
