Our Close-the-Books Audit Work Program serves as a detailed framework for conducting audits related to the financial close process, ensuring compliance with generally accepted accounting principles (GAAP) and relevant regulatory requirements. It outlines the essential steps involved in planning, fieldwork and reporting phases of the audit. This program emphasizes the importance of understanding the organizational structure, policies and procedures that govern the closing process. It also highlights the necessity for effective communication and coordination among key personnel, as well as the establishment of comprehensive checklists to track tasks and responsibilities throughout the closing period.

Additionally, this document includes two samples that provide insights into specific audit procedures and considerations. Sample 1 focuses on project planning and the review of internal controls, such as segregation of duties and management oversight, while Sample 2 delves into risk assessment and the evaluation of accounting applications. It addresses potential irregularities and outlines tailored audit procedures to assess the effectiveness of the close-the-books process. It further discusses the role of technology and automated systems in facilitating the closing process, alongside the importance of thorough documentation and collaboration with external auditors. Overall, this policy serves as a vital resource for audit teams aiming to enhance the accuracy and efficiency of financial reporting.

Audit steps include:

• Review known best practices for initial benchmarking in the focus area.
• Determine if the company is complying with the close-the-books schedule as determined by management.
• Interview key accounting personnel.
• Benchmark the company’s close process with other companies.