NFRS & Financial Reporting
The same audit points come back every year
“Our auditor raises the same points every year.”What owners tell us
The situation
Signs you are facing this
- Management letter points repeat year after year
- Year-end adjustments are large
- Reconciliations are prepared only when requested
- NFRS disclosures are copied from last year
The situation
The same audit points come back every year
Driver 1
Root cause not addressed
Points are answered, but the process behind them is unchanged.
Driver 2
No monthly discipline
Balances are checked once a year.
Driver 3
NFRS gaps
Policies and disclosures do not reflect current standards.
- 1
Diagnose
Trace each point
Link every finding to the process that causes it.
- 2
Design
Fix the process
Monthly reconciliations, controls and clear policies.
- 3
Embed
Prepare for year end
NFRS-ready statements and a supporting file before fieldwork.
- Root-cause review of recurring points
- Remediation plan with owners and dates
- Process and control fixes
- Year-end readiness checklist
Common questions
What is a management letter point?
An issue your statutory auditor reports to management, such as weak controls or missing reconciliations, alongside the audit opinion.
How do I prepare for a statutory audit?
Close the books, reconcile key balances, document accounting policies, and prepare schedules supporting each figure. Our audit readiness checklist covers the detail.
Related situations
- “Our finance team records numbers but gives us little insight.”Finance records the numbers but gives no insight
- “There are too many reports and I still do not know which numbers matter.”Too many reports, and still unclear which numbers matter
- “Our business has grown faster than our systems.”The business has outgrown its systems