Audit process
From engagement letter to signed opinion
This page maps the rhythm of a statutory financial audit with Nishi Balance Partners — so controllers know when documents are due, when we will be on site, and what clearance week requires.
Why process matters in Toyama close season
March year-ends collide with inventory counts, supplier settlements, and board calendars. A vague audit plan creates overtime. A sequenced plan lets your finance team stage bank confirmations, count attendance, and related-party schedules without guessing what arrives next.
Use this page as a briefing for your controller and warehouse leads before you request an estimate.
-
Scoping call
We confirm legal entities, fiscal year-end, inventory locations, prior auditor status, and whether lenders expect extra procedures. You receive a document request list within three business days.
-
Engagement letter & fee
Scope, independence representations, and fee schedule are signed before fieldwork. Deposits follow the billing pattern described on our fees page.
-
Planning & risk assessment
We walk revenue, inventory, cash, and related-party cycles with your team, set materiality, and schedule observation dates with warehouse managers.
-
Fieldwork
Substantive testing, sampling, and inquiries happen at your premises or a secure workroom. Open items are logged daily with a single engagement manager.
-
Inventory observation
When physical counts apply, we attend, test cut-off, and document variances before count sheets leave the floor.
-
Clearance & opinion
Adjusting entries are agreed, the management letter is ranked by severity, and the auditor’s report is signed for your filing package.
What we ask you to prepare
- Trial balance and general ledger export mapped to prior-year presentation
- Bank and legal confirmation requests already in progress
- Inventory count instructions and location maps
- Related-party schedule with contracts and board approvals
- Prior-year closing package and any lender covenant worksheets
How long does a first-year audit usually take?
Most single-entity manufacturers need six to ten weeks from letter to opinion. Related-party complexity or multi-site inventory can extend clearance.
Can you work partly off-site?
Yes, once secure ledger access and document portals are agreed. Inventory observation and certain cash walkthroughs still happen in person.
What if we only need lender procedures?
Ask about agreed-upon procedures instead of a full statutory opinion. We will match the bank checklist line for line in the engagement letter.