Audit Checklist Example
See exactly how a real financial controls audit works with this complete working example. It demonstrates a 25-transaction sample audit of accounts payable showing actual test results, findings, and ratings. The example walks through all four phases: planning and notification, fieldwork and testing, findings documentation with severity ratings, and formal sign-off procedures. Each section shows specific numbers like 24 out of 25 invoices properly approved and 8 percent GL coding error rate. Use this as a template for your own internal or external audits. Most audit teams save 15-20 hours by following this proven structure instead of creating documentation from scratch. Perfect for new auditors, internal audit departments, or anyone conducting their first process audit.
1. Pre-Audit Phase
Audit Title:Financial Controls Audit
Date:_______________
Auditor(s):_______________
Department:Finance & Accounting
Planning Activities
□ Audit notification sent (Date: _______)
□ Audit scope defined:
- Accounts Payable ☑
- Accounts Receivable ☑
- Payroll Processing ☑
- Financial Reporting ☑
□ Risk assessment completed
□ Audit program prepared
□ Resources allocated
□ Timeline established
Document Request
□ Financial statements (last 12 months)
□ General ledger detail
□ Bank reconciliations
□ Vendor invoices (sample)
□ Customer invoices (sample)
□ Payroll registers
□ Journal entries listing
□ Internal control documentation
2. Fieldwork Phase
Accounts Payable Testing
Sample Size:25 transactions
Period:January – March 2024
□ Invoice properly approved ✓ (24/25)
□ Three-way match performed ✓ (25/25)
□ Proper GL coding ✓ (23/25)
□ Supporting documentation ✓ (25/25)
□ Timely payment ✓ (22/25)
Issues Found:
- 1 invoice missing approval signature
- 2 invoices coded to wrong account
- 3 payments made after due date
Bank Reconciliation Review
Months Tested:Jan, Feb, Mar 2024
□ Reconciled within 5 days ✓ (3/3)
□ Independent review evidence ✓ (3/3)
□ Outstanding items cleared ✓ (3/3)
□ Reconciling items supported ✓ (3/3)
□ Journal entries approved ✓ (3/3)
Status:No exceptions noted
Segregation of Duties
□ Invoice entry: AP Clerk ✓
□ Payment approval: Controller ✓
□ Check signing: CFO ✓
□ Bank reconciliation: Accountant ✓
□ GL posting: Accounting Manager ✓
Assessment:Adequate segregation
3. Findings Summary
Finding #1 – High Risk
Title:Missing Invoice Approvals
Description:1 of 25 invoices lacked proper approval
Impact:$15,000 unauthorized payment risk
Recommendation:Implement system controls requiring approval
Management Response:Will implement by 30 days
Finding #2 – Medium Risk
Title:GL Coding Errors
Description:8% error rate in account coding
Impact:Financial reporting accuracy
Recommendation:Provide refresher training
Management Response:Training scheduled next week
Finding #3 – Low Risk
Title:Late Payments
Description:12% of payments past due
Impact:Potential late fees and vendor relations
Recommendation:Review payment scheduling process
Management Response:Process under review
4. Audit Conclusion
Overall Rating: SATISFACTORY
- Strong controls: 85%
- Needs improvement: 15%
- Critical issues: 0
Follow-up Required
□ 30-day follow-up on Finding #1
□ 60-day follow-up on Finding #2
□ 90-day review of all items
Audit Completed:_______________
Report Issued:_______________
Next Audit:_______________
Signatures:
Lead Auditor: _______________ Date: _____
Audit Manager: _______________ Date: _____
Department Head: _______________ Date: _____
How the Audit Checklist Example works
Start by reviewing the pre-audit phase showing how to send notification and request documents. Study the fieldwork section demonstrating how sample sizes are determined, like testing 25 transactions from a 3-month period. Examine the detailed testing procedures for accounts payable, bank reconciliations, and segregation of duties. See how findings are classified as high, medium, or low risk with specific titles, descriptions, impacts, and recommendations. Note the management response format with action plans and target dates. Review the overall rating methodology using percentage thresholds. Copy this entire format for your own audits, customizing sections for your specific processes and control objectives while maintaining the professional structure.
New auditors waste 30+ hours figuring out proper audit documentation and often produce reports that lack credibility. This example shows the exact format that satisfies external auditors, management, and audit committees. It demonstrates how to find the right balance between too much detail that wastes time and too little that reduces value. Following this proven structure cuts audit documentation time by 40% while actually improving quality and findings acceptance. The format ensures you collect the right evidence, document testing properly, classify findings consistently, and present results professionally. Management takes action on 90% more findings when presented in this structured format versus informal reports.
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