Last reviewed October 7, 2026 · By the NYBACS advisory team
Short answer
A US financial statement audit needs the company's trial balance and general ledger, a reconciliation or supporting schedule for every material account, and the source documents behind them: bank statements, customer and vendor contracts, invoices, payroll reports, loan agreements, equity and board records, and tax filings. The auditor issues a "provided by client" (PBC) list setting out what it needs and when, and also obtains some evidence directly from third parties.
Key takeaways
- The PBC list is the auditor's request list; items on it are prepared by the company, not by the audit firm.
- Every schedule the company provides should agree to the year-end trial balance, and opening balances should agree to last year's closing figures.
- Auditors obtain certain evidence directly, such as bank and customer confirmations and legal letters from your lawyers; the company authorizes these but does not intercept them.
- Subsequent-period documents matter: invoices and payments received after year-end are used to test for unrecorded liabilities and the collectability of receivables.
- At the end of the audit, management signs a representation letter confirming, among other things, that it has provided all relevant records.
How the PBC list works
Shortly after the engagement letter is signed, the audit firm sends a PBC list, usually a spreadsheet or a portal checklist, with each request, the account it relates to and a due date. Some items are needed before fieldwork for planning (prior-year statements, organization chart, significant contracts); others are needed at the start of fieldwork (year-end schedules); and sample-based requests follow once the auditor selects specific transactions to test.
The list tells you what the auditor wants, not how good your answer is. A bank reconciliation that does not agree to the ledger, or a fixed-asset schedule that omits disposals, generates follow-up questions that slow the whole audit.
At the planning meeting, agree three practical points: the upload method and naming convention, the person on your side who owns each section of the list, and how the auditor will flag a submission it considers incomplete. Ask too whether the firm will accept system reports exported directly from your accounting software, which saves reformatting time.
Core financial records requested in almost every audit
- Trial balance and general ledger for the full year, plus the prior-year audited or closing trial balance.
- Draft financial statements (balance sheet, income statement, cash flow statement and equity statement) if management prepares them.
- Bank and card reconciliations at year-end for every account, including fintech and payment-processor balances held in the company's name.
- Accounts receivable aging at year-end, with customer detail.
- Accounts payable aging and a list of payments made in the first weeks after year-end.
- Accrued liabilities schedule, showing how each accrual was calculated.
- Prepaid expense and fixed-asset schedules, rolling forward from opening balance to closing balance.
- Journal entry listing, including manual and year-end entries, which auditors test for unusual or unsupported postings.
Legal, equity and governance documents
Auditors test whether the books reflect what the company has legally committed to. Expect requests for:
- Certificate of incorporation or formation, bylaws or operating agreement, and amendments.
- Board and shareholder minutes and written consents for the year and up to the report date.
- The cap table, stock ledger, share certificates or book-entry records, and option grant documents.
- SAFEs, convertible notes and warrants, with their full terms.
- Loan and credit agreements, including covenant terms and any waivers.
- Leases for offices, equipment or data centers.
- A list of related parties and transactions with them, including owners, directors and group companies.
For foreign-owned companies, intercompany agreements (services, licensing, loans) and the parent's confirmation of intercompany balances are frequently requested.
Evidence the auditor collects directly
Some evidence is more reliable when it comes straight from an outside party, so the auditor obtains it without passing through the company:
| Evidence | Who supplies it | Your role |
|---|---|---|
| Bank confirmation | Your bank | Authorize the request and provide contacts |
| Receivable confirmations | Selected customers | Supply addresses; encourage replies |
| Legal letters | Your outside lawyers | Sign the request letter the auditor drafts |
| Debt confirmations | Lenders | Provide lender contacts |
Delays here are common with overseas banks and customers, so share contact details as soon as the auditor asks.
Payroll, tax and revenue support
Payroll testing usually draws on payroll registers, quarterly Form 941 filings, Forms W-2 and state unemployment filings, which the auditor agrees to the expense in the ledger. Contractor payments are compared to Forms 1099.
Tax support typically includes the filed federal return (Form 1120 or the partnership return) for the prior year, state franchise and income tax filings, and, for a C-Corp, a calculation of current and deferred income tax for the audit year.
Revenue evidence depends on the business model: signed customer contracts and order forms, billing-system exports, shipping or delivery records, and a deferred revenue schedule. These are the documents auditors sample most heavily, so they should be indexed by customer and date.
Common mistakes to avoid
- Sending schedules that do not agree to the trial balance and expecting the auditor to find the difference.
- Providing unsigned or draft versions of contracts, board consents or SAFEs.
- Omitting fintech wallets, payment-processor balances or foreign bank accounts held in the US company's name.
- Forgetting post-year-end invoices and payments, which auditors use to search for unrecorded liabilities.
- Letting overseas bank or customer confirmations sit unanswered because nobody followed up.
Documents and records to prepare
- Year-end trial balance, general ledger and prior-year closing trial balance
- Bank, card, fintech and payment-processor statements and year-end reconciliations
- Accounts receivable and accounts payable agings, plus post-year-end receipts and payments
- Schedules for prepaids, fixed assets, accruals, deferred revenue, debt and equity
- Formation documents, bylaws or operating agreement, board minutes and consents
- Cap table, stock ledger, option grants, SAFEs, convertible notes and warrants
- Customer contracts, vendor contracts, leases and loan agreements
- Payroll registers, Forms 941, W-2 and 1099, and filed federal and state tax returns
- Intercompany agreements and parent-confirmed intercompany balances (for foreign-owned entities)
NYBACS 360° support
How NYBACS helps
- Maps the auditor's PBC list to the books and assigns each request an owner and a date.
- Prepares the year-end reconciliations and roll-forward schedules so they tie to the trial balance before submission.
- Indexes contracts, equity records and board consents so sample requests can be answered quickly.
- Chases bank, lender and intercompany confirmations, including with overseas banks and parent finance teams.
- Tracks open PBC items and auditor questions in a single log through to the report date.
Frequently Asked Questions
When will the auditor send the PBC list?
Usually shortly after the engagement letter is signed, and often before year-end for planning. Asking for it early gives you time to prepare schedules before fieldwork rather than during it.
Can we upload documents to our own data room instead of the auditor's portal?
Most firms prefer their own portal because it links each document to a request and keeps an audit trail. Ask at the planning stage; where a firm accepts an external data room, index it to the PBC request numbers.
What if a contract was never signed?
Tell the auditor rather than sending a draft as if it were final. The auditor may look for other evidence of the arrangement, such as purchase orders, emails and payment history, and the accounting treatment may need to reflect whether a contract existed under the applicable standard.
Do auditors need personal bank statements of the founder?
Generally not, but if company expenses were paid personally or the founder lent money to the company, the auditor may ask for evidence of those specific transactions. Keeping reimbursement records on the company side avoids this.
