Audit Approach
Stages we follow on every statutory engagement
Financial auditing is timed work. This page shows how Sumi Balance Advisory moves from the engagement letter to the signed report without burying your finance team in avoidable queries.
1. Scoping & engagement letter
We confirm entities in scope, reporting framework, independence, and the deliverable format. A fixed fee and fieldwork window are written into the letter before any testing begins.
2. Planning & risk assessment
Industry risks, prior adjustments, and material account balances shape the testing plan. We walk through cash, revenue, purchases, and inventory with the people who actually run those cycles.
3. Fieldwork & inventory observation
Substantive tests and control walkthroughs happen on site or against agreed digital exports. Where inventory is material, we attend the physical count with a pre-agreed sampling plan.
4. Query clearing & draft findings
Open items are listed with owners and due dates. Proposed adjustments and control observations are discussed in draft so surprises do not arrive with the final report.
5. Report issuance & closing meeting
The auditor’s report and management letter are issued, followed by a closing meeting that walks directors through remaining recommendations for the next year-end.
Documents we ask for early
- Trial balance and general ledger export
- Bank reconciliations and debt schedules
- Inventory count instructions and floor plans
- Significant contracts and related-party listings
- Prior-year report and known subsequent events
Ready to schedule fieldwork?
Share your fiscal year-end, entity structure, and whether a physical inventory is planned. We will map a realistic calendar against our capacity in Shimane and neighbouring prefectures.