26 August 2026 · Support
What Audit Preparation Support Covers
Audit preparation support means building lead schedules, reconciling balances, indexing evidence and listing open items for the appointed auditor. Management still owns the books, approvals and explanations. The appointed auditor performs the independent audit and issues the opinion. Exiloz can prepare the working pack and hand it over without presenting the service as a statutory audit.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Support prepares the handover, not the opinion
Audit preparation support turns a closed ledger into lead schedules, reconciliations, indexed evidence and an exception log for the appointed auditor. The work starts with the trial balance and general ledger, then follows each material balance to the source document or calculation. It can remove searching from the first meeting, but it does not replace management's responsibility for the records or the auditor's independent testing.
If you are deciding whether to ask for support, identify the balances that are still consuming explanations. We recommend starting there rather than ordering a generic document collection, because the condition of the bank, receivables, payables and tax files determines the useful scope. Exiloz can prepare the pack and support the handover. It is not an FTA-accredited ASP, not a registered Tax Agent and does not perform statutory audits.
The service is useful when the records exist but the route through them is slow or inconsistent. It can build the bridge from the trial balance to the source, index the evidence and list the gaps. It cannot make a missing approval appear or decide whether management's accounting treatment is correct. Those limits should be agreed before the first schedule is prepared.
- Start with the final trial balance and general ledger.
- Build lead schedules for material balances.
- Index evidence beside the schedule it supports.
- Keep the appointed auditor's independent role clear.
The scope follows the records you can prove
The work changes when the source records change. A company with reconciled bank statements needs a clean review and index. A company with gateway settlements, old receivables or unfinished fixed-asset records needs more tracing before the pack is ready. A tax group may need a separate discussion about its special purpose financial statements. The number of schedules is less useful than knowing which balance still lacks an object behind it.
Use the latest ledger export and the source file list to set the boundary. Management supplies approvals, contracts, statements and explanations. Preparation support can arrange the evidence, perform the arithmetic and mark the gaps, but it cannot invent a missing invoice or approve an unrecorded entry. The appointed auditor decides whether the pack supports the engagement and which further procedures are needed.
The cost of the wrong scope is duplicated work. A narrow brief may cover the bank but leave the tax reconciliation or related-party schedule unresolved. A broad brief may collect files that do not answer any ledger question. Start with the balances causing delay, name the evidence required for each and state which decisions remain with management or the appointed auditor.
- Set scope from the ledger and source-file list.
- Separate clean balances from investigation work.
- Ask management for approvals and explanations.
- Mark missing documents instead of filling the gap with prose.
| Work item | Source needed | Output |
|---|---|---|
| Trial balance tie-out | Final ledger and approved adjustments | Lead schedule with explained differences |
| Bank reconciliation | Statements, approvals and clearing evidence | Account bridge and open-item log |
| Receivables review | Customer listing, invoices and later receipts | Ageing bridge and exception notes |
| Tax balance check | Returns, payment records and calculation | Book-to-return reconciliation |
The handover should answer the first questions
A useful pack has an index, a lead schedule for each material balance, a ledger reference, linked source files and an exception log. The index tells the auditor where to start. The schedule shows the opening balance, movement and closing balance. The source file proves the transaction or calculation. The exception log names what is missing, who owns it and what management will do next. Each part has a job.
Preparation support can also compare the trial balance with the bank, customer, supplier, asset, payroll and tax schedules. That comparison is where duplicated postings and wrong-period entries usually become visible. Keep proposed journal entries separate from approved entries, and put management's approval beside the final version. The handover is stronger when a reviewer can tell what is complete, what is provisional and what remains outside the records.
The mistake we see most is delivering an index that lists files but not the balance each file supports. A bank statement, invoice or contract becomes useful when its relationship to the ledger is stated. Put the account, period, owner and exception beside the link. That lets the appointed auditor select evidence without asking management to rebuild the logic of the pack.
- Create one index for the complete handover.
- Add ledger references to every lead schedule.
- Separate approved and proposed journal entries.
- Keep a dated exception log for missing support.
Tie the pack before the auditor receives it
Illustrative worked example: the handover shows bank balances of AED 126,000, receivables of AED 300,000 and payables of AED 174,000, so AED 126,000 + AED 300,000 - AED 174,000 = AED 252,000 in the review sheet. The arithmetic is not an audit conclusion. It is a control that tells the preparer whether schedule totals were copied consistently before the source files were indexed.
The process is close, reconcile, document, review and hand over. First save the ledger version. Then perform the account bridges, attach the evidence and write the unresolved items. Have management review the approvals and explanations. Finally, send the indexed pack to the appointed auditor with a short note that distinguishes prepared schedules from matters still awaiting independent testing. That separation protects both the records and the engagement.
The handover meeting should answer what is ready, what is missing and who will resolve it. Those are practical questions, not a promise that every balance has been accepted. Keep the source records under the company's control, keep approvals visible and let the appointed auditor decide which procedures and evidence are sufficient for the opinion. A clear status note also prevents prepared work from being mistaken for an audit conclusion.
- Save the ledger version used in the tie-out.
- Reconcile each schedule before indexing evidence.
- Have management review approvals and explanations.
- Label prepared work separately from audit procedures.
The source documents decide what support can say
The trial balance, general ledger, bank statement, customer listing, supplier file, contract, tax return and approval record are the objects that make a preparation claim testable. Support can organise them, trace totals and show where the record breaks. It cannot turn an absent source document into evidence or make a management decision on behalf of the company. The appointed auditor still evaluates sufficiency and performs the independent work.
Ministerial Decision No. 84 of 2025 says a Tax Group must prepare audited special purpose financial statements in the form, procedures and rules specified by the Federal Tax Authority. FTA Decision No. 7 of 2025 supplies requirements for the aggregated statements, but the published guidance does not specify how a preparation-support provider must document every missing source file or management judgement. The pack should record that basis and preserve any written direction rather than hiding the question.
That boundary also applies to the service itself. Exiloz can prepare and organise the records, but the appointed auditor decides whether the evidence is sufficient and performs the statutory audit. Before handover, have management review the schedules, approvals and exceptions. Keep the source files under the company's control and label prepared work clearly so no reader mistakes it for an audit opinion.
- Name the source document behind each conclusion.
- Keep missing evidence visible in the exception log.
- Record Tax Group format guidance when received.
- Do not describe preparation support as statutory audit work.
Frequently Asked Questions
For defining the preparation support scope.
What does audit preparation support include?
Audit preparation support can include lead schedules, balance reconciliations, evidence indexing, exception logs and a handover pack for the appointed auditor. The company remains responsible for its books, approvals and explanations. The appointed auditor decides what further testing or evidence the engagement requires.
Does Exiloz perform statutory audits?
No. Exiloz prepares schedules, reconciliations and evidence for the appointed auditor. The appointed auditor performs the independent audit, asks the engagement questions and issues the audit opinion. Preparation support does not replace that independent work or present Exiloz as a statutory audit firm.
Who remains responsible for the financial statements?
Management remains responsible for the financial statements, accounting records, approvals and explanations. Exiloz can organise the information and prepare working schedules, but it does not take management's responsibilities. The appointed auditor then evaluates the evidence and performs the audit under the engagement.
How is the pack handed to the auditor?
Exiloz can provide an indexed pack with lead schedules, ledger references, supporting files and an exception list. The appointed auditor reviews that pack through the engagement process and may request more evidence. Management should keep ownership of the source records and remain available for explanations.
Need the pack prepared?
Exiloz builds the lead schedules, reconciles the balances and prepares the indexed handover pack for your appointed auditor.