Preparing QuickBooks Enterprise for Audit
Audit preparation inside QuickBooks Enterprise requires disciplined reconciliation, inventory validation, elimination review, and documented close procedures. Without structured workflows, audits result in adjustments, delays, and credibility issues.
If your organization needs structured execution support, see our QuickBooks Enterprise Accounting Services page.
What Auditors Review in QuickBooks Enterprise
- Balance sheet reconciliations
- Accounts receivable aging
- Accounts payable aging
- Inventory valuation
- Intercompany eliminations
- Sales tax liabilities
- Journal entry documentation
- Financial statement consistency
Step 1: Reconcile All Balance Sheet Accounts
- Reconcile bank accounts
- Reconcile credit cards
- Validate prepaid and accrual balances
- Confirm fixed asset balances
Related QuickBooks Enterprise Month End Close Services.
Step 2: Validate Accounts Receivable
- Review aging report
- Clear unapplied cash
- Confirm revenue recognition
- Validate large or old balances
See QuickBooks Enterprise Accounts Receivable Outsourcing.
Step 3: Validate Accounts Payable
- Reconcile vendor statements
- Confirm accrual accuracy
- Validate cutoff procedures
See QuickBooks Enterprise Accounts Payable Outsourcing.
Step 4: Validate Inventory and Cost of Goods Sold
- Reconcile inventory balances
- Validate cost layers
- Confirm bill of materials accuracy
- Review WIP adjustments
- Align COGS to revenue
See
- QuickBooks Enterprise Advanced Inventory Accounting Support
- QuickBooks Enterprise Manufacturing Edition Accounting
Step 5: Review Intercompany Eliminations
- Reconcile intercompany balances
- Confirm elimination entries
- Validate consolidated reporting
See QuickBooks Enterprise Multi Entity Accounting Support.
Step 6: Reconcile Sales Tax
- Validate liability balances
- Confirm taxable sales alignment
- Prepare filing documentation
See QuickBooks Enterprise Sales Tax Filing Support.
Step 7: Review Journal Entries
- Confirm supporting documentation
- Review unusual adjustments
- Validate recurring entries
Step 8: Prepare Audit Documentation Packet
- Balance sheet reconciliations
- Inventory valuation schedules
- Elimination workpapers
- Sales tax reconciliation schedules
- Variance analysis documentation
For structured support, see QuickBooks Enterprise Audit Readiness Support.
Common Audit Findings in QuickBooks Enterprise
- Inventory discrepancies
- Unapplied cash balances
- Unreconciled intercompany accounts
- Duplicate vendor entries
- Sales tax liability mismatches
- Inconsistent documentation
If system complexity is contributing to audit risk, see QuickBooks Enterprise vs NetSuite. If evaluating staffing structure, see In House vs Outsourced QuickBooks Enterprise Accounting.
When to Begin Audit Preparation
Audit preparation should begin several months before formal audit start to allow time for reconciliation cleanup and documentation refinement.
How Structured Execution Reduces Audit Risk
- Defined close calendar
- Monthly reconciliation discipline
- Inventory validation procedures
- Documented elimination framework
- Consistent reporting governance
For complete operational support, see QuickBooks Enterprise Accounting Services.
Frequently Asked Questions
How long should audit preparation take?
Preparation timelines vary by complexity, but structured cleanup should begin at least several months before audit start.
Should inventory be validated before audit?
Yes. Inventory balances and cost of goods sold should be reconciled and documented before audit begins.
Do elimination entries need documentation?
Yes. Intercompany eliminations should be supported by reconciliation schedules and documentation.
Can audit adjustments be reduced with better monthly close?
Yes. Consistent monthly reconciliation reduces audit adjustments and reporting risk.
