Preparing the binder before your first statutory audit

First-time statutory audits stall less often on accounting theory than on missing paper. Before a scoping call with any firm — including ours — assemble a binder that lets an auditor see whether opening balances can be trusted.

Start with the spine of the year

Pull the trial balance at year-end and at the prior year-end, the full general ledger export, and the chart of accounts with account owners named. If account codes changed mid-year, include a mapping sheet. Auditors spend hours reconstructing that mapping when it is absent.

Fixed assets and depreciation

Bring the fixed-asset register, purchase invoices for additions, disposal paperwork, and the tax depreciation schedule. In Hiroshima Prefecture manufacturing clients we often find the tax schedule and the books diverge on tooling purchased near year-end; catching that early shortens fieldwork.

Cash and confirmations

Bank statements for all accounts, outstanding cheque lists, and a contact person who can authorise confirmation letters. If your bank requires a wet-ink form, print blanks before the kick-off meeting.

Inventory if stock is material

List quantities by location, not only by value. Include shipping logs for the three days before and after year-end. Without cut-off evidence, observation visits become arguments instead of counts.

What you can leave for later

Detailed board minutes and lengthy contracts can wait until planning identifies which revenue streams are material. Do not delay the scoping call while you perfect every folder — bring what exists and name what is missing.

When you contact the atelier, mention which of these packs are ready. That single sentence often determines whether we quote a first-year premium or a steadier recurring fee.