A PBC request list is the schedule of documents and reports an audit team asks the client to prepare and provide, such as bank reconciliations, a trial balance, a fixed asset rollforward and debt agreements. Each line names one item, the client-side owner, a due date, its status and where the file is, so fieldwork can start on time.
What does PBC mean on an audit request list?
PBC on an audit request list stands for "prepared by client." A PBC item is a document, schedule or report that the client's own staff produce or pull from their records and hand to the audit team, as opposed to evidence the auditors gather themselves, such as confirmations they send to banks.
The PBC list is how the audit team turns its plan into requests. Once the team knows which accounts and areas it will test, it writes down what it needs from the client to do that work. A team planning to test receivables needs an aged receivables listing. A team planning to test fixed asset additions needs the rollforward and invoices for the larger additions. The list is a translation of the audit plan into the client's language.
Timing matters as much as content. Most items fall into one of three groups:
- Before fieldwork. The trial balance, prior-year adjusting entries, the organization chart and policies. These let the team plan and set expectations.
- At the start of fieldwork. Reconciliations, rollforwards and listings for each area.
- During fieldwork. Support for samples the team selects, such as specific invoices or contracts. These cannot be requested in advance, because the sample is not known until the team picks it.
The client also needs to know what "prepared" means for each item. A bank reconciliation the client prepares should agree to the general ledger and to the bank statement. A schedule that does not tie to the trial balance sends the auditor back to the client, which costs both sides time.
PBC list items by audit area
PBC list items by audit area are the requests grouped by section of the financial statements: cash, receivables, inventory, fixed assets, debt, equity, revenue and payroll. Grouping by area lets each client owner see their part of the list, and lets each auditor on the team track the items for the area they are testing.
Cash. Bank statements for the year-end month and the month after, bank reconciliations for every account at year end, and a list of all bank accounts open during the year, including any closed.
Receivables. An aged receivables listing at year end that ties to the general ledger, the allowance for doubtful accounts calculation, and a list of significant credit memos issued after year end.
Inventory. The year-end inventory listing with quantities and costs, the count instructions and count sheets, and the calculation of any reserve for slow-moving or obsolete items.
Fixed assets. A rollforward showing beginning balance, additions, disposals and ending balance for cost and accumulated depreciation, plus invoices for additions above a threshold the team sets.
Debt. Loan agreements and amendments, lender statements at year end, a schedule of balances, interest rates and maturities, and the covenant calculation if the agreement has covenants.
Equity. The capitalization table or shareholder register, board minutes covering equity transactions, and any stock option or warrant agreements.
Revenue. A breakdown of revenue by stream or customer, significant contracts, and sales invoices and shipping documents for the samples the team selects.
Payroll. Payroll registers, payroll tax filings for the year, and the reconciliation of payroll expense to the general ledger.
Almost every area starts from the trial balance and general ledger. Getting those out of the client's accounting system in a usable form is its own task, covered in the financial statements and ledgers category.
How should a PBC list audit example be laid out?
A PBC list audit example should be laid out as a table with one row per item and columns for the item number, audit area, description, client owner, due date, status and file reference. A description precise enough that the client knows exactly what to send decides whether the item arrives right the first time.
Each column has a job:
- Item number. A stable reference both sides use in email, such as "C-3" for the third cash item.
- Area. The section of the financial statements, for sorting.
- Description. One document, one period, one entity. "Bank reconciliation, Harbor Federal operating account XXXX-4821, December 31" rather than "bank recs."
- Client owner. A named person at the client, not a department.
- Due date. A date, not "early in fieldwork."
- Status. Requested, received, reviewed or returned with a question.
- File reference. Where the received file is, so nobody asks for it twice.
An example audit PBC list template
The template below has 20 sample items across audit areas. The client (Example Manufacturing Co.), owners, accounts and dates are fictional examples for a December 31 year end.
| No. | Area | Item | Client owner | Due | Status | File |
|---|---|---|---|---|---|---|
| G-1 | General | Year-end trial balance tied to the general ledger | Controller | Jan 20 | Received | G-1 TB.xlsx |
| G-2 | General | Board minutes for the year and through fieldwork | CFO | Jan 20 | Requested | |
| G-3 | General | Organization chart and list of related parties | CFO | Jan 20 | Received | G-3 org.pdf |
| C-1 | Cash | List of all bank accounts open during the year | Controller | Jan 20 | Received | C-1 accounts.xlsx |
| C-2 | Cash | December and January statements, all accounts | Staff accountant | Jan 27 | Received | C-2 stmts.pdf |
| C-3 | Cash | Dec 31 reconciliation, operating account XXXX-4821 | Staff accountant | Jan 27 | Returned: does not tie to GL | C-3 rec.xlsx |
| R-1 | Receivables | Aged receivables at Dec 31, tied to GL | AR lead | Jan 27 | Received | R-1 aging.xlsx |
| R-2 | Receivables | Allowance for doubtful accounts calculation | Controller | Jan 27 | Requested | |
| R-3 | Receivables | Credit memos over $5,000 issued Jan 1 to Feb 15 | AR lead | Feb 17 | Requested | |
| I-1 | Inventory | Year-end listing with quantities and unit costs | Operations manager | Jan 27 | Received | I-1 listing.xlsx |
| I-2 | Inventory | Obsolescence reserve calculation | Controller | Jan 27 | Requested | |
| F-1 | Fixed assets | Rollforward of cost and accumulated depreciation | Staff accountant | Jan 27 | Received | F-1 roll.xlsx |
| F-2 | Fixed assets | Invoices for additions over $25,000 | Staff accountant | Feb 3 | Requested | |
| D-1 | Debt | Loan agreement and amendments, Example Bank term loan | CFO | Jan 20 | Received | D-1 loan.pdf |
| D-2 | Debt | Lender statement at Dec 31, loan XXXX-7730 | Controller | Jan 27 | Received | D-2 stmt.pdf |
| D-3 | Debt | Covenant calculation at Dec 31 | CFO | Feb 3 | Requested | |
| E-1 | Equity | Shareholder register at Dec 31 | CFO | Jan 27 | Received | E-1 register.pdf |
| V-1 | Revenue | Revenue by customer for the year, tied to GL | Controller | Jan 27 | Received | V-1 revenue.xlsx |
| P-1 | Payroll | Payroll registers, all pay periods | Payroll lead | Jan 27 | Received | P-1 registers.pdf |
| P-2 | Payroll | Reconciliation of payroll expense to GL | Payroll lead | Feb 3 | Requested |
Software can carry this table instead of a spreadsheet; the tools post covers what PBC list software tracks and how it compares with a spreadsheet.
PBC request list items for reviews and compilations
PBC request list items for reviews and compilations are fewer than for an audit, because the work performed is narrower. A review list leans toward the information the accountant needs for inquiry and analytical procedures. A compilation list is usually limited to what the firm needs to assemble the financial statements, set by the engagement letter.
For reviews, the international standard gives a picture of the work. The IAASB staff summary of ISRE 2400 (Revised), the international standard on review engagements, describes a review as a limited assurance engagement in which the practitioner performs procedures primarily consisting of inquiries and analytical procedures, with further procedures when something suggests the statements may be materially misstated. US reviews are performed under the AICPA's AR-C section 90, which the AICPA page on SSARS No. 25 says was further converged with ISRE 2400 (Revised); read AR-C 90 itself for the US requirements.
In practice, a review request list keeps the items that support analysis and drops most of the sample support:
- Kept. The trial balance, prior-year statements, account reconciliations, aged receivables and payables, the debt schedule and a list of significant transactions.
- Usually dropped. Invoices for sampled additions, shipping documents for revenue samples and count sheets.
For a compilation, the list shrinks again to what the firm needs to put the financial statements together: typically the trial balance, the general ledger, and the information needed for any disclosures the statements include. The engagement letter sets the scope, so the list should match it line for line.
A firm that does both tax and attest work for the same client often asks for overlapping documents. The post on what documents you need from tax clients covers the tax side, and comparing the two lists before sending either avoids asking a client for the same bank statement twice.
PBC request lists that stall fieldwork
PBC request lists that stall fieldwork share a few mistakes: vague item descriptions, no named owner on the client side, no due dates, requests sent too late, and no way to see which items are still open. Each one turns a list into a back-and-forth that eats the first week of fieldwork.
Vague items. "Fixed asset support" can mean a rollforward, a depreciation schedule or a stack of invoices. The client guesses, sends the wrong one and waits for the next email. Describe one document, one period and one entity per line.
No owner on the client side. A list addressed to "accounting" sits in the controller's inbox. Each item needs a person, and that person needs to know they own it.
No dates, or one date for everything. If every item is due the same day, everything arrives late together. Stagger dates by when the team needs each item.
Late requests. A list sent the week before fieldwork leaves the client no time to prepare reconciliations and rollforwards, which take real effort.
No status. Without a status column, the team cannot tell what is outstanding without searching email. The list should be the single record of what came in.
Files that do not match the request. A client uploads "December statements" that turn out to be November, or sends the right reconciliation for the wrong account. The status says received, but the item is not. Someone has to open each file and check it against the line before ticking it.
That last check is where reading the document matters. Schema CPA reads bank, savings and loan statements, general ledgers, trial balances, balance sheets and income statements, records each one's issuer and period, ties statement balances month to month, and calls out a gap such as a missing month in a run of statements. The workflow section of the homepage walks through those steps.