Field notes
Preparing for a first statutory audit
Crossing an audit threshold is less about new software and more about evidence habits your bookkeeper can sustain.
A first statutory audit rewards firms that already retain contracts, board minutes, and inventory count sheets. If those live only in personal email, begin a shared archive six months before year-end.
Choose an auditor who understands SME volume. A Big Four timetable designed for listed groups will overwhelm a ten-person finance function. Ask for a realistic PBC list during the proposal stage.
Appoint one internal coordinator. When every department answers the auditor separately, duplicate files and contradictory narratives appear. The coordinator should know which systems hold which evidence.
Budget management time for the findings meeting. First-year audits almost always produce control recommendations. Treating them as a learning list—not a personal criticism—keeps the relationship workable for year two.