The Auditor is Coming: How to Prepare Your “PBC” List Before January (SOP)

Every January, finance teams across Dubai freeze. The external auditors arrive, and they bring a massive document called the PBC List (Provided by Client List).

If you wait until January to see this list, you are already late.

Trying to find 12 months of bank statements, legal contracts, and VAT returns while closing the books is a recipe for disaster. It leads to missed deadlines, overtime for your team, and a frustrated auditor who digs deeper because your files are messy.

Smart CFOs don’t wait. They built the audit evidence list in December.

Use this audit preparation checklist UAE to build your digital folders now. When the auditor asks, you just send the link.

Folder 1: The “Bank” Folder (Action Required NOW)

This is the number one cause of delays. Auditors cannot sign off without direct confirmation from your banks.

• The Problem: Banks often take 2-4 weeks to respond to audit confirmation requests. If you ask in late January, you might not get a reply until March.
• The SOP:
  • Draft Letters: Prepare standard bank confirmation letters for every bank where you hold an account (even empty ones).
  • Signatories: Get authorized signatories to sign them by December 15th.
  • Send: Dispatch them to the banks immediately after year-end.
  • Files to Save: December 31st Bank Statements and the Bank Reconciliation Sheet for every account.

Folder 2: The “Legal & Governance” Folder

Auditors need to know you exist legally and haven’t broken the law.

• The Check: Do you have valid documents for the entire audit period?
• The SOP: Create a folder with:
  • Trade License: Current license and the one that expired in 2025.
  • MOA/AOA: Any amendments made this year.
  • UBO Register: Your Ultimate Beneficial Owner declaration.
  • Board Minutes: Signed minutes from all 2025 board meetings.
  • Legal Confirmation: A letter from your external lawyer confirming any pending lawsuits or fines.

Folder 3: The “Payroll & HR” Folder

Staff costs are usually a company’s biggest expense. Auditors test this rigorously for external audit requirements in Dubai.

• The Check: Does your Ledger match your WPS?
• The SOP:
  • WPS Reports: Save all 12 approved SIF files and bank transfer proofs.
  • EOSB Calculation: Re-calculate the End of Service Benefit liability for all staff as of Dec 31st.
  • Sample Contracts: Have a folder of signed employment contracts for a random sample of 10 employees (5 new joiners, 5 existing).

Folder 4: The “VAT & Tax” Folder

With Corporate Tax now live, this folder is high-risk.

• The Check: Does Revenue per Financials match Revenue per VAT Returns?
• The SOP:
  • VAT Reconciliation: A simple sheet showing Revenue (Books) vs. Revenue (VAT Returns). Explain every difference (e.g., out-of-scope supplies).
  • Returns: PDFs of all 4 quarterly VAT returns filed in 2025.
  • Corporate Tax: Your registration certificate and your provision calculation (IAS 12).

Folder 5: The “Expense” Folder (The Top 10)

Auditors don’t check every bill. They check the big ones.

• The Check: Can you prove your highest costs?
• The SOP:
  • Tenancy Contract: Your office lease (for IFRS 16 testing).
  • Top 10 Expenses: Pull the invoices and proof of payment for your 10 largest expenses of the year. Put them in a folder.

Prepayments Schedule: A list of what makes up your “Prepaid Expense” balance (e.g., insurance policies with coverage dates).

Why This Audit-First Approach Wins in the UAE

Most UAE businesses treat audits as a document-hunting exercise.
The auditor requests a file. The finance team searches emails, folders, and spreadsheets. Time is lost. Confidence drops. Audit risk increases.

High-performing companies operate differently.

By preparing a December audit-ready PBC (Prepared by Client) pack, audits shift from information gathering to verification.
Auditors receive complete, reconciled, and cross-checked records upfront — ledgers, VAT schedules, bank confirmations, and supporting documents in one structured package.

The result:

• Fewer audit queries
• Faster audit completion
• Lower compliance risk
• A stronger impression of financial control

January should not be spent chasing missing documents.
Build your audit pack in December and let the audit confirm accuracy — not expose gaps.

FAQs: Audit Preparation Checklist UAE

Want the full checklist? DM us “PBC” on LinkedIn for the Standard Audit Preparation Checklist UAE

Author: Laila Al Hemeiri Service: External Audit Services