โ Back to JournalIf your auditors arrive in 30 days, your close is already under judgment.
Here is the practical, owner-driven sequence that prevents last-minute panic.
Day 1โ5
Lock the Foundation
Owner: Controller
- Finalize trial balance (locked period)
- Confirm subledger tie-outs (AP, AR, FA)
- Clear suspense accounts
- Ensure reconciliations are signed off
- Validate revenue cut-off
- Review significant manual journals
Deliverable: Clean, recon-certified TB.
Day 6โ10
Prepare Core Schedules
Owner: GL Team
- Cash rollforward
- AR aging + bad debt reserve support
- AP aging
- Accrual listing
- Prepaid amortization schedule
- Fixed asset rollforward
- Deferred revenue rollforward
Deliverable: Attach documentation now. Not when requested.
Day 11โ15
Control & Compliance Review
Owner: Finance Ops Lead
- Segregation of duties report
- JE approval logs
- Evidence of review controls
- Access control review
- Policy updates
- Significant contract summaries
Deliverable: Auditors test controls early. Make them clean.
Day 16โ20
Analytical Review Preparation
Owner: Controller
- Revenue vs prior year analysis
- Gross margin movements
- Opex trend by function
- Unusual variances > materiality threshold
- Ratio analysis (DSO, DPO, cash conversion)
Deliverable: Prepare narrative explanations before they ask.
Day 21โ25
Evidence Packaging
Owner: Audit Liaison
- Folder structure aligned to PBC list
- Standard naming conventions
- Version control locked
- Final cross-reference check
Deliverable: Disorganization signals weak control.
Day 26โ30
Mock Audit
Owner: Full Team
- "Walk me through revenue recognition."
- "Why did this accrual change?"
- "Explain this manual JE."
Deliverable: If your team can answer clearly in under 2 minutes, you're ready.
"Audit readiness is not about scrambling. It's about operational hygiene practiced all year."
Lunari Audit Management
Be audit-ready every month, not just in Q4.
Lunari auto-generates your PBC package, tracks evidence, and surfaces control gaps before your auditors do.