Field Notes · 2026-04-03
Preparing Your Trial Balance Before Fieldwork Begins
What auditors actually open first, and the five ledger cleanups that shorten fieldwork for mid-sized Japanese companies.
By Hiroshi Tanabe
Fieldwork moves faster when the trial balance is locked, not when every invoice is already filed in perfect folders. We start with the trial balance because it tells us which accounts carry material balances and where suspense accounts still hold unexplained amounts.
Clear intercompany receivables and payables before we arrive. Unmatched balances between related entities create circular confirmations and delay the cash and revenue cycles that usually sit on the critical path.
Reconcile bank accounts through the statement date, including uncleared items older than sixty days. Those stale items are often the first place we ask for supporting evidence.
Inventory subledgers should agree to the general ledger before the physical count. Recounting stock while also hunting a ledger difference is how observation days overrun.
Finally, list known subsequent events—contracts signed after year-end, lawsuits, or plant closures. Mentioning them early keeps the management letter focused on surprises that actually matter.