In this guide · 7 sections
- Send the client one year-end request list, by area, at the start of the finalisation — not a trickle of WhatsApp messages over six weeks.
- Ask for documents (statements, agreements, invoices), schedules (ageing, fixed asset additions, stock) and explanations (movements, unusual balances) — each with a due date.
- Balance confirmations are your requests under SA 505: the client can sign the authority, but you send them and receive the replies.
- Turn each analytical-review finding into a specific query with the figures, so the reply can be checked.
- Close each query with the reply and the evidence seen. Anything still open at sign-off is a condition to clear before the report is dated, or is reflected in the report — never a loose end.
Try SignReady: Send the whole query list as one WhatsApp link — no client login.
Start freeIn most small-firm finalisations the slowest step is not the audit work — it is waiting for the client. Requests go out one at a time, replies come back as photos on WhatsApp, and three weeks later nobody is sure what is still pending. A single, structured year-end request list (often called a "PBC" — prepared-by-client — list) fixes most of this. This guide gives a list by area that you can adapt, and a way to send, track and close queries.
How to build the list
- One list, by area, at the start. Send it with the engagement letter or as soon as the provisional TB arrives, with a due date for each item.
- Tailor it. Remove what does not apply (no inventory, no borrowings) and add what the TB shows (a new loan, a large new expense head). A generic 120-item list gets ignored.
- Be specific. "Bank statements for all accounts for April 2025 to March 2026, and the reconciliation as at 31 March 2026" gets a better reply than "bank details".
- Separate documents from explanations. Documents can be uploaded by the accountant; explanations of movements may need the owner or a director.
The year-end request list, by area
| Area | Ask for | Why (standard / purpose) |
|---|---|---|
| Trial balance and books | Final TB for the year (ledger-wise, with opening balances), last year's audited statements, journal entries passed after the provisional TB | Starting point; roll-forward from last year |
| Bank | Statements for every account for the full year; bank reconciliation at year end; list of accounts opened or closed during the year; FD receipts and interest certificates | Existence and completeness of cash and bank; confirmations (SA 505) |
| Cash | Cash book; cash balance certificate at year end; explanation of any large cash payments or receipts | Existence; unusual cash transactions |
| Trade receivables | Party-wise list with ageing; signed confirmations authority; credit notes after year end; balances outstanding over six months with reasons | Existence, valuation; ageing schedule (Schedule III, companies) |
| Trade payables | Party-wise list with ageing; MSME (Udyam) status of suppliers; debit balances explained | Completeness; ageing and MSME disclosures |
| Inventory | Stock statement by category at year end; basis of valuation; physical verification record; slow-moving and obsolete items | Existence and valuation (SA 501 where material) |
| Fixed assets | Fixed asset register; invoices for additions above a stated amount; details of disposals with sale value; capital work-in-progress status | Additions, disposals and depreciation; CWIP ageing (companies) |
| Borrowings | Sanction letters; loan statements for the year; interest certificates; security and charge details; loans from directors / partners / relatives with confirmations | Classification (current vs non-current), disclosure, related parties |
| Income tax | Advance tax and self-assessment tax challans; TDS / TCS credit as per Form 26AS / AIS; last year's return and assessment orders; pending demands and appeals | Tax provision; contingent liabilities |
| GST | Returns for the year (GSTR-1, GSTR-3B, annual return where filed); reconciliation of turnover and input tax credit with the books; notices received | Revenue completeness; balances with authorities |
| TDS and payroll | Quarterly TDS returns and challans; salary register; PF / ESI challans | Statutory dues; expense completeness |
| Related parties | List of related parties and transactions during the year, with agreements and approvals | Identification and disclosure (SA 550) |
| Legal and commitments | Pending litigation and claims; guarantees given; capital commitments | Contingent liabilities (SA 501 on litigation and claims; letters to the client's lawyers where the risk calls for it) |
| Governance (companies) | Minutes of board and general meetings; statutory registers; ROC filings for the year | Approvals, events, compliance |
| Subsequent events | Significant events after the year end up to the date of the audit report | Events requiring adjustment or disclosure (SA 560; AS 4 / Ind AS 10) |
In SignReady, review points become client queries with due dates. Share one link by WhatsApp or email; the client replies and attaches files against each query, and you see what is open, replied or overdue.
Turning review findings into queries
The standard list covers documents. The queries that matter most come from your analytical review and the TB itself — and they need to be specific, with the figures, so the reply can be checked against evidence (SA 520 para 7 requires audit evidence relevant to management's explanations):
| Finding | Query to the client |
|---|---|
| Repairs and maintenance up from ₹4.2 lakh to ₹11.8 lakh | "Please share the details of the major repair bills above ₹50,000 and confirm whether any of them extend the life or capacity of an asset." |
| Debtor "Sharma Traders" with a credit balance of ₹2.4 lakh | "Sharma Traders shows a credit balance of ₹2,40,000. Please confirm whether this is an advance from the customer and share the ledger." |
| New unsecured loan of ₹25 lakh | "Please share the loan confirmation, the agreement or board resolution, and the bank entries for the receipt." |
| Suspense account balance of ₹68,000 | "Please provide the entries in the suspense account and clear it before finalisation." |
Balance confirmations are yours to send
SA 505 requires the auditor to maintain control over external confirmation requests — determining what to confirm, selecting the parties, designing the requests so that replies come directly to you, and sending them (including follow-ups). The client's role is to authorise the confirming parties to reply to you; if management refuses to let you send a request, SA 505 requires you to ask why and seek evidence for the reason. A confirmation forwarded by the client from the party's email, or a ledger "confirmed" on the client's letterhead, is weaker evidence. Ask the client for the authority letter and contact details; send the requests yourself.
Sending, chasing and closing
- Give every query a due date and a single owner at the client.
- Use one channel and one list. Replies scattered across WhatsApp, email and phone calls are how queries get lost.
- Review replies promptly — accept, ask a follow-up question, or send back with the reason.
- Record the closure: the reply, the evidence seen and the conclusion, in the working papers (SA 230).
- Before sign-off, every query is closed, or is a condition that must be cleared before the report is dated, or is reflected in the report. Where you rely on oral explanations, corroborate them, and cover the significant ones in the written representations (SA 580) — representations support the evidence, they do not replace it.
Try SignReady: Replies and attachments land against each query; overdue ones stand out.
Start freeFrequently asked questions
What is a PBC list?
A "prepared by client" list: the documents, schedules and explanations the auditor asks the client to provide for the audit or finalisation, usually by area and with due dates.
Can the client send the balance confirmations to customers and suppliers?
Under SA 505 the auditor must maintain control over confirmation requests — deciding what to confirm, selecting the parties, designing the requests so replies come directly to the auditor, and sending them. The client authorises the parties to reply to the auditor.
Is management's reply to a query enough evidence?
Usually not on its own. SA 520 requires management's explanations for unexpected movements to be supported by appropriate audit evidence, and SA 500 requires sufficient appropriate evidence generally. Ask for the document behind the explanation.
What should happen to queries still open at sign-off?
They should not be left as loose ends: resolve them, record them as conditions that must be cleared before the report is dated, or reflect their effect in the audit report. Corroborate oral explanations you rely on; written representations (SA 580) support the evidence but do not replace it.
How long should the client get to reply?
Set a due date for each item — commonly one to two weeks for documents and a few days for explanations of specific findings — and agree it with the client at the start.
Sources
- ICAI — SA 500 Audit Evidence
- ICAI — SA 505 External Confirmations
- ICAI — SA 501 Audit Evidence — Specific Considerations for Selected Items
- ICAI — SA 520 Analytical Procedures
- ICAI — SA 580 Written Representations
- ICAI — SA 560 Subsequent Events
- ICAI — SA 230 Audit Documentation
- ICAI — SA 550 Related Parties
SignReady keeps every query, reply and attachment for the finalisation in one place, with due dates and reminders, and links each resolved query back to its review point. First 3 finalisations free.
Version history: 4 Oct 2026 — first published.
