Audit Readiness Preparation for an Omani Manufacturing Company

Intro

A first-time audit can be overwhelming for companies without established documentation processes. This case study outlines how we helped a manufacturing company organize its records, prepare audit schedules, and successfully complete an external audit required for bank financing.

Client Background

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The client is a medium-sized industrial manufacturer located in Sohar. The company planned to expand production capacity and needed audited financial statements to secure financing from a local bank. Their accounting records were fragmented across spreadsheets and physical documents, with no structured audit preparation procedures in place.

Challenges

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• Disorganized general ledger with unreconciled accounts
• Missing supporting documents for major expense and asset categories
• Inventory records did not match physical stock levels
• No clear understanding of external audit requirements
• Time-sensitive deadline from the bank

Solution

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We initiated a full audit preparation program:

1. Financial Cleanup & Reconciliations

• Cleaned up the general ledger and corrected mispostings
• Reconciled all bank accounts, supplier balances, and inventory records
• Prepared trial balance adjustments and documentation

2. Audit Schedules & Workpapers

• Created audit-ready schedules for revenue, expenses, fixed assets, and inventory
• Organized invoices, contracts, purchase orders, and GRNs
• Implemented a new filing structure for financial documents

3. Staff Training & Coordination

• Trained the finance team on audit expectations and required evidence
• Coordinated directly with the external auditor to streamline queries
• Ensured all audit deliverables were submitted ahead of schedule

The company completed its first audit with minimal adjustments and obtained the bank financing needed for its expansion plans.