The PBC list – what you need to know
The PBC (prepared/provided by clients) list is an audit request list with items that an auditor will need from the client in order to perform an audit. Among other things, the list contains schedules, documents and spreadsheets that the auditor needs before the start of the audit fieldwork.
What does the PBC list include?
The items on the list are often categorized in accordance to balance sheet accounts, cash flow, and revenue and expense accounts. However, the list also contains requests on items like organizational charts, contracts and loan covenant calculations that show that the organization meets loan requirements. Essentially, it will include anything that has a material impact on your company’s finances. PBC lists are often preliminary and dynamic, meaning that more documentation will often be requested, once the audit commences.
Auditing can be a challenging task, even if you have a PBC list. A lot of employees are involved in the audit as well as the PBC list. The involved employees may not be used to deliver documentation to the audit department, they may not remember the procedures from the year before or they may not have been in their current job junction at the time. Collecting and providing the right information at the right time can therefore be a challenge for all involved parties.
How to approach the PBC list
Audit is an inevitable part of running a professional business and the PBC list exists to make the task easier for both the auditor and the employees. The list has its advantages; documents can be prepared beforehand, which will decrease the amount of time that the auditor needs to spend and cost the organization less money. When getting the list in advance, it is possible to schedule time and resources for when it suits the team best, rather than having to provide it immediately.
Therefore, once you get the PBC list from your auditor, you should start working on it. The faster the process is, the faster the commotion is over. Keep in mind, however, that the audit department may request more documentation during the fieldwork. Just remember that the audit department is not out to get you; they just need to follow standards and do their jobs.
A way to easily manage the PBC list
Impero’s solution reverses the process of the PBC list: The auditor logs into Impero and retrieves the documentation, instead of employees having to provide it. In this way, documentation can be reused other places in the organization, and valuable time can be saved. Impero’s solution can provide an overview of ongoing process, allowing you to see what has been delivered and what is missing.
Organizations that use Impero for their PBC list do so because they see a solution that promotes accountability and productivity. Organizations can save time, optimize workflows and stay organized in an easy and user-friendly manner.