Audit Support from a Remote Team: Workpapers, PBC Schedules and Tie-Outs#
Audit and review season creates a particular kind of backlog. The fieldwork is moving, but the documentation behind it is not: lead schedules half built, reconciliations not yet tied to the trial balance, a request list with items still open. This article describes what a remote team can prepare for you, what it cannot, and how the work is structured so your engagement team stays in control.
One point first. The offshore team prepares schedules under your firm's direction and review. It does not perform the audit, form conclusions or sign anything. Our service covers preparation work only.
What can be prepared remotely#
Lead schedules. A lead schedule groups accounts from the trial balance into a financial statement line and shows the prior year, current year and any adjustments. Building them is mechanical once the trial balance and your template are in hand.
Tie-outs. Every schedule is tied back to the trial balance or the draft financial statements. The tie-out shows the schedule total, the trial balance figure and the difference, which should be nil or explained.
Account reconciliations. Bank, receivable and payable reconciliations prepared from statements, subledgers and listings that the client or your team shares.
Rollforwards. For accounts that move through the year, such as fixed assets, a rollforward shows opening balance, additions, disposals, depreciation and closing balance. Fixed asset and depreciation schedules are within our scope.
Supporting schedules for "prepared by client" items. Many request lists include schedules the client is supposed to produce. Where the client cannot, your firm may ask us to prepare them from the records provided, for your team to review and pass on.
Document indexing and documentation review. Records are named, indexed and cross-referenced to the workpaper that uses them. We check documents against the schedule and list anything missing or inconsistent.
What cannot be handed over#
- The audit or review opinion, and any report to the client.
- Sign-off on workpapers.
- Risk assessment, materiality, sampling decisions and conclusions.
- On-site testing, observations and confirmations.
- Contact with the client's management or with third parties about the audit.
- Anything that needs the signing firm's licence.
We do not hold US, UK or Australian professional credentials. Work is reviewed by a Chartered Accountant (ICAI) and returned for your team's review. It does not replace the sign-off of a licensed professional in your jurisdiction.
How the work is done#
1. Scope and templates. We agree which schedules and workpapers are needed and work to your firm's templates, file structure and referencing style.
2. NDA and access. We sign an NDA if you want one, before any records are shared. Access is limited to what the work needs.
3. Preparation. Schedules are prepared from the trial balance and the supporting records you share. Each figure is referenced to its source.
4. Review and return. A Chartered Accountant reviews the work. It then goes back to your team with a list of open items and information requests.
A small illustration#
The figures below are illustrative round numbers. This is a receivables lead schedule with a tie-out.
| Line | Amount |
|---|---|
| Trade receivables per aged listing | 180,000 |
| Less: allowance, as determined by your team | (10,000) |
| Other receivables per listing | 5,000 |
| Total per lead schedule | 175,000 |
| Trial balance: receivables accounts | 175,000 |
| Difference | 0 |
The allowance is shown as an input from your team. We do not decide it. If the listing and the trial balance had differed by 2,000, the tie-out would show the difference and the open-items list would name the likely cause, for example an invoice posted after the listing date. Your team decides what to do about it.
A simple PBC support tracker#
| PBC item | Who prepares | Source | Status |
|---|---|---|---|
| Bank reconciliations at period end | Remote team | Statements, QuickBooks Online | Prepared, in review |
| Aged receivables and payables | Remote team | QuickBooks Online reports | Prepared |
| Fixed asset rollforward | Remote team | Prior-year register, invoices | Awaiting invoices |
| Loan statements and confirmations | Client | Lender | Client to send |
| Management representations | Engagement team | n/a | Not ours |
The last row is deliberate. A tracker is only useful if it also shows what is not ours to prepare.
What can be handed to an offshore team, and what stays#
| Handed over | Stays with the firm |
|---|---|
| Lead schedules and tie-outs | Conclusions on those balances |
| Reconciliations | Review and sign-off |
| Rollforwards | Judgements on estimates and policies |
| Indexing and cross-referencing | Client contact and fieldwork |
| Open-item and information-request lists | The opinion or report |
What to send#
- Your templates and a sample completed file, so we match your format.
- The trial balance for the period and the prior year.
- Read access to the client's QuickBooks Online file where relevant, or exported reports.
- Bank statements, subledger listings, loan statements and invoices needed for each schedule.
- The PBC or request list, marked with the items you want prepared.
- Your referencing and naming rules.
What comes back#
- Prepared workpapers and schedules in your template.
- Tie-outs to the trial balance or financial statements.
- A list of open items and information requests.
- An index of documents used.
Review checks for your team#
| Check | What to look at |
|---|---|
| Tie-out | Every schedule agrees to the trial balance or the difference is explained |
| Sources | Each figure refers to a document |
| Inputs from you | Estimates and allowances are marked as your inputs |
| Open items | Each has an owner |
| Format | Matches your template and referencing |
| Scope | Nothing prepared goes beyond preparation |
Frequently asked questions#
Do you perform or sign off on audits? No. We prepare documentation remotely under your direction. Testing, conclusions, client-facing work and opinions stay with your engagement team.
Do you hold CPA or other local credentials? No. Work is reviewed by a Chartered Accountant (ICAI) and returned for your team's review.
Can you use our file structure and software? We work to your templates and file structure. Where the client's books are in QuickBooks Online, we can work from that file. We do not take on other accounting software.
How are records shared? Digitally. We sign an NDA first if you want one.
Where to go next#
For the wider picture of how accounting firms use an offshore team, see our page for CPA firms. The scope of this service is set out under audit support and workpaper preparation.
