Your First Year Leading Audit Prep? Here's What to Focus On

If this is your first year leading audit prep, take a breath—you’ve got this.

Whether you’re stepping into the role due to a promotion, staff turnover, or just being the most capable person in the room, it can feel like a lot.

You’re now the one:

• Tracking down reports

• Answering auditor questions

• Reviewing trial balances

• Making sure nothing slips through the cracks

 

The good news? You don’t need to be a CPA or a seasoned expert to lead audit prep well.
You just need to focus on the right things.

Here’s how to take control of your first audit season as the point person—with confidence, clarity, and way less stress.

1. Understand What the Auditor Needs—and Why

Start by learning what the auditor is actually looking for. They’re not just asking for documents—they’re assessing whether your records are complete, consistent, and supported.

✅ Focus on:

• Bank reconciliations that match year-end balances

• Supporting schedules for capital assets, debt, and payroll

• A trial balance that reflects final entries

• Federal grant documentation for the SEFA

• A clean folder of backup ready for fieldwork

You don’t need to know everything—just what’s due, what’s missing, and where it lives.

2. Create an Internal Audit Folder You Can Build On

If your files are saved on someone’s desktop or buried in inboxes, it’s time to centralize.

✅ Start with a folder structure like:

• Trial Balance & GL

• Bank Statements & Recs

• Payroll Reports

• Capital Assets

• Long-Term Debt

• Federal Programs

• Adjusting Entries

• Board Minutes & Policies

• Final Audit Documents

Save reports each month—not just at year-end—to reduce the scramble later.

3. Keep a Running “Audit Notes” Document

When you lead audit prep, people will look to you for answers—months after the fact.

Create a simple running doc that tracks:

• Why certain entries were made

• What changed from last year

• What auditors asked about

• Who reviewed what and when

• Where support is saved

Future you (and your future coworkers) will thank you.

4. Build a Checklist That Fits Your Entity

Don’t rely on generic task lists or vague audit requests. Build a checklist based on what your entity needs to provide.

✅ Your list might include:

• Final trial balance reviewed and saved

• All reconciliations uploaded to shared folder

• SEFA expenditures reconciled to GL

• Adjusting entries posted and explained

• Board approval of financial statements scheduled

Track what’s done, what’s in progress, and who’s responsible.

5. Communicate Early and Often

Auditors don’t expect perfection—but they do appreciate clarity.

✅ Keep your communication:

• Honest (“We’re still finalizing this report.”)

• Timely (“We’ll have it uploaded by Friday.”)

• Organized (“Here’s our folder structure for fieldwork.”)

Pro tip: Don’t wait for the auditor to ask—check in weekly with quick status updates during audit season.

6. Ask Questions (That’s Leadership Too)

Leading audit prep doesn’t mean you have to know everything.

It means you’re responsible for making sure things get done—and that includes getting help when you need it.

Ask your auditor:

• “Can you clarify what support you need for this item?”

• “How should we document this properly?”

• “What do other governments our size typically do here?”

Good questions now prevent rework later.

Leadership Isn’t About Knowing—It’s About Owning

You don’t need years of experience to lead audit prep successfully.

You just need to:

✅ Stay organized
✅ Track progress
✅ Ask smart questions
✅ Communicate clearly
✅ Build systems you can reuse next year

Because the real win isn’t just getting through the audit—it’s building a process that gets easier every year.

You’re not just checking boxes.

You’re building capacity—and leading with clarity.