/audit-checklist

/audit-checklist — Audit Preparation Checklist

What This Command Does

Generates a comprehensive audit preparation checklist tailored to the entity, audit area, and applicable standards. Covers documentation requirements, testing procedures, evidence gathering, and common findings to watch for. Tracks completion status and flags high-risk areas requiring additional scrutiny.

When to Use

• Preparing for external audit (year-end or interim)
• Internal audit planning and execution
• First-year audit preparation
• Audit readiness assessment before auditors arrive
• SOX compliance testing preparation
• Remediation tracking for prior-year findings

How It Works

1. Risk Assessment: Identifies high-risk areas based on entity type, industry, and prior findings
2. Checklist Generation: Creates area-specific procedures aligned with ISA/PCAOB standards
3. Documentation Map: Lists required PBC (prepared by client) documents per area
4. Testing Procedures: Defines sample sizes, selection methods, and assertion coverage
5. Completion Tracking: Provides status tracking with reviewer sign-off fields
6. Issues Log: Templates for documenting findings and management responses

Example Usage

Input:

/audit-checklist entity:"Nordic Pharma AS" area:revenue standard:IFRS materiality:500000

Output:

# Audit Preparation Checklist — Nordic Pharma AS
## Area: Revenue | Standard: IFRS 15 | Materiality: EUR 500K
## Audit Period: FY2025 | Prepared: 2026-03-14

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
## Risk Assessment — Revenue
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

| Risk Factor                    | Level  | Rationale                       |
|--------------------------------|--------|---------------------------------|
| Revenue recognition complexity | High   | Multiple performance obligations|
| Contract modifications         | Medium | Frequent amendment patterns     |
| Variable consideration         | High   | Rebates, returns, milestones    |
| Cut-off risk                   | Medium | Year-end shipment timing        |
| Fraud risk (ISA 240)           | Present| Presumed risk per standards     |

Planned approach: Combined (controls + substantive testing)
Sample size: 25 transactions (statistical, MUS method)

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
## PBC Document Checklist
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

| # | Document                              | Status | Due Date   |
|---|---------------------------------------|--------|------------|
| 1 | Revenue recognition policy memo       | ⬜     | 2026-02-28 |
| 2 | Complete contract listing (top 50)    | ⬜     | 2026-02-28 |
| 3 | Revenue by product line / geography   | ⬜     | 2026-03-05 |
| 4 | Credit note / returns summary         | ⬜     | 2026-03-05 |
| 5 | Rebate and discount schedule          | ⬜     | 2026-03-05 |
| 6 | Deferred revenue rollforward          | ⬜     | 2026-03-10 |
| 7 | Bill-and-hold arrangement details     | ⬜     | 2026-03-10 |
| 8 | Related party sales listing           | ⬜     | 2026-03-10 |
| 9 | Revenue cut-off testing schedule      | ⬜     | 2026-03-15 |
|10 | Management representation letter      | ⬜     | 2026-03-30 |

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
## Testing Procedures
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

### IFRS 15 Five-Step Model Testing
| Step                          | Procedure                      | Status |
|-------------------------------|--------------------------------|--------|
| 1. Identify contract          | Verify signed agreements exist | ⬜     |
| 2. Identify perf. obligations | Test allocation of bundled deals| ⬜    |
| 3. Determine transaction price| Verify variable consideration  | ⬜     |
| 4. Allocate to perf. oblig.   | Test standalone selling prices | ⬜     |
| 5. Recognize revenue          | Test timing — point vs. over time| ⬜   |

### Substantive Procedures
| # | Procedure                             | Assertion    | Status |
|---|---------------------------------------|-------------|--------|
| 1 | Sales to cash receipts tracing (25)   | Occurrence  | ⬜     |
| 2 | Cash receipts to sales (25)           | Completeness| ⬜     |
| 3 | Year-end cut-off testing (±5 days)    | Cut-off     | ⬜     |
| 4 | Analytical review — monthly trends    | Reasonableness| ⬜   |
| 5 | Related party transaction review      | Valuation   | ⬜     |

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
## Common Findings Watchlist
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

⚠ Pharma industry: Watch for channel-stuffing patterns in Q4
⚠ Milestone-based contracts: Verify constraint on variable consideration
⚠ Rebate accruals: Test historical accuracy of estimates
⚠ Bill-and-hold: Verify all criteria under IFRS 15.B79-B82

### Issues Log Template
| # | Finding | Severity | Ref | Mgmt Response | Status |
|---|---------|----------|-----|---------------|--------|
|   |         |          |     |               |        |

Related Agents

• auditor — Primary agent for audit procedures and testing
• controller — For client-side audit preparation
• compliance-officer — For regulatory audit requirements