Here’s a rewrite using active voice and transition words:
Auditors create varying numbers of “Prepared By Client” (PBC) requests for each audit. Firstly, the size and complexity of the organization determine the range. Generally, a typical PBC list includes 30 to 50 different requests. Moreover, these requests encompass a wide array of documents. For instance, auditors often ask for trial balances, financial statements, and bank reconciliations. Additionally, they request accounts receivable and payable aging reports, fixed asset schedules, and operational documents. Consequently, planning the PBC request workload becomes a crucial yet frequently overlooked task.
“Automate up to 80% of the request list, transforming what would typically be a 37-item PBC list into a much shorter, more manageable list of around 10 items”
The time it takes to complete “Prepared By Client” (PBC) requests can vary widely based on several factors, including the complexity of the audit, the size of the organization, and the efficiency of the processes in place. On average, completing PBC requests can take anywhere from several weeks to a few months. Planning PBC request work allocation among available resources can improves productivity. Improved productivity is a path to the busy season being less busy. Planning PBC requests, or the overhead of doing so, can be greatly reduced by using year-overyear analysis.
Typically, auditors send an initial PBC list to the client a few months before the audit begins. The client then has to gather and organize all requested documents, which can be a time-consuming process. The use of traditional methods like emails, spreadsheets, and shared drives often leads to inefficiencies. Delays due to the back-and-forth nature of communications and the potential for miscommunication or missed items​.
Quick Checklist for PBC Planning
- Analyze Previous Audits Review past PBC lists. Identify recurring requests. Note any issues from last year. This step helps anticipate auditor needs. Update Financial Records Organize your financial data. Reconcile accounts regularly.
- Prepare up-to-date financial statements. Accurate records streamline the audit process.
- Assign Responsibilities Create a team for PBC requests. Designate specific tasks to each member. Set clear deadlines. This approach ensures timely and complete responses.
- Implement Document Management Use a centralized system for document storage. Organize files logically. Ensure easy accessibility. Efficient document management saves time during audits.
- Communicate with Auditors Reach out to your audit team early. Discuss expectations and timelines. Address potential issues proactively. Open communication leads to smoother audits.
Technology streamlines the audit process. Automated data extraction and centralized dashboards drastically reduce PBC list completion time. These platforms automate up to 80% of the request list. They transform a 37-item PBC list into a manageable 10-item list. This speed-up reduces errors and improves audit efficiency. Auditors can focus on more complex tasks. Clients benefit from a smoother, faster audit experience.
“Effective PBC list management is the cornerstone of a smooth audit process. By proactively organizing and preparing requested items, companies can significantly reduce audit time, costs, and stress.” – AICPA
On average, if efficient tools and processes are utilized, the completion time for PBC requests can be shortened considerably, allowing audits to be conducted more smoothly and with fewer disruptions to the client’s daily operations. Use digital tools, like Dash360, and some process improvement to find a way forward with less effort and more happiness. Your team deserves it!