How to prepare for an audit in Latvia?
By Artūrs Strazdiņš, Sworn Auditor
How smoothly an audit runs depends largely on how well the company’s data is organised when the auditor starts. Good preparation generally helps the audit run more smoothly and reduces strain on the accounting team.
Start with the timeline
Engage the auditor early, preferably before the financial year ends — this allows deadlines to be agreed and, where relevant, the inventory count to be observed.
Which documents will typically be needed?
- accounting records and the draft annual report
- bank account statements and balance confirmations
- receivables and payables reconciliations
- inventory count documentation
- key contracts and fixed asset registers
Reconcile balances and complete the inventory count
Reconciling balances and a properly documented inventory count are the foundation of preparation. Resolve discrepancies before the auditor’s work begins.
Keep communication open during the work
Clearly designated contact persons and timely responses to the auditor’s requests have a significant effect on how smoothly the process runs.
Frequently Asked Questions
How early should preparation start?
Preferably before the financial year ends, and no later than immediately after year-end close.
Must the auditor observe the inventory count?
If inventory is material to the annual report, the auditor will generally need to attend the inventory count. This should be agreed well in advance.
What if errors are found?
Identified misstatements are discussed with management, which evaluates any necessary corrections before the annual report is approved.
Artūrs StrazdiņšSworn Auditor (certificate No. 228), board member of SIA RE Audit. Working in audit since 2008. More about the author →Not sure about your situation?
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