What are Audit PBC Requests?
Definition
Audit PBC Requests are information requests sent by external auditors to the client’s finance, accounting, tax, treasury, or operations teams during an audit. PBC usually means “Prepared by Client,” and the request asks the company to provide schedules, reconciliations, reports, calculations, documents, approvals, or explanations that support the financial statements.
Audit PBC Requests are central to audit coordination because auditors use them to verify account balances, test controls, review disclosures, and understand significant transactions. A well-managed PBC request process supports Close External Audit Readiness by ensuring that financial data is complete, traceable, reviewed, and delivered on time.
How Audit PBC Requests Work
The process usually begins when auditors issue a PBC list before or during audit fieldwork. Each request includes a description, due date, period covered, format requirement, and sometimes a sample selection. The company then assigns each item to an owner, prepares the support, reviews it internally, and submits it through an audit portal or shared repository.
For example, an auditor may request the year-end bank reconciliation, a fixed asset roll-forward, a revenue contract listing, a lease liability schedule, or evidence of journal approval. The finance team must ensure the file agrees to the general ledger, includes proper support, and is reviewed before submission.
Common Types of PBC Requests
Audit PBC Requests vary by account area, audit scope, and risk assessment. Common request categories include:
Reconciliations: Balance sheet reconciliations, bank reconciliations, subledger tie-outs, and reconciling item details.
Lead schedules: Account summaries that connect trial balance figures to supporting schedules.
Journal support: Journal listings, approval evidence, calculations, and business explanations.
Contracts and agreements: Revenue contracts, lease agreements, debt agreements, vendor contracts, and board approvals.
Control evidence: Review sign-offs, access approvals, change logs, and segregation-of-duties documentation.
Disclosure support: Schedules for commitments, contingencies, related parties, debt, leases, and subsequent events.
Key Finance Workstreams
Different finance teams handle different PBC areas. Reconciliation External Audit Readiness focuses on ensuring account reconciliations are complete, reviewed, and supported. Revenue External Audit Readiness covers revenue listings, contract support, deferred revenue schedules, credit memos, and cut-off evidence.
Expense-related requests may require accrual schedules, invoice support, payroll summaries, purchase orders, and variance explanations, supporting External Audit Readiness (Expenses). For supplier-heavy companies, Vendor External Audit Readiness and AP External Audit Readiness help organize vendor statements, unpaid invoice listings, payment support, and payables cut-off documentation.
Controls and Review Discipline
Before submitting a PBC item, the company should review whether the file is complete, current, and aligned with the audit request. A schedule should tie to the trial balance or subledger, include the correct period, show source references, and explain any differences. This improves audit efficiency and reduces follow-up questions.
Systems-based requests also require strong preparation. ERP External Audit Readiness may include user access listings, system-generated reports, interface checks, and report parameter evidence. Teams should also coordinate with Audit Support (Shared Services) when shared service centers prepare recurring schedules or high-volume transaction support.
Metrics and Practical Example
Common metrics for Audit PBC Requests include request completion rate, on-time submission rate, average response time, number of auditor follow-ups, open request aging, rework volume, and audit adjustment count. These metrics help controllers understand whether audit support is organized, timely, and accurate.
One useful metric is PBC completion rate. The formula is: PBC completion rate = completed PBC requests / total PBC requests × 100. For example, if auditors issue 260 requests and the finance team completes 234 by the agreed deadline, the PBC completion rate is 234 / 260 × 100 = 90%. This helps leaders identify the remaining 10% by owner, account area, evidence type, and audit impact.
Specialized Audit Support Areas
Asset-heavy businesses may receive requests tied to Asset External Audit Readiness, including asset registers, depreciation reports, additions, disposals, impairment reviews, and capital project support. Companies with significant leases may prepare Lease External Audit Readiness files such as lease agreements, right-of-use asset roll-forwards, lease liability schedules, and discount rate support.
Where receivables and credit exposure are material, Credit External Audit Support may include customer confirmations, aging reports, allowance calculations, and credit memo analysis. Internal teams may also compare audit results against an Audit Finding Rate Benchmark to understand recurring documentation gaps, control findings, or evidence quality trends.
Best Practices
Finance teams can manage Audit PBC Requests more effectively by assigning one owner per request, using a centralized tracker, standardizing file names, reviewing support before submission, and tying every schedule to the general ledger or source system. Clear ownership and early preparation improve financial reporting quality, operational efficiency, and audit readiness.
Summary
Audit PBC Requests are auditor requests for client-prepared evidence that supports financial statements, controls, account balances, transactions, and disclosures. They include reconciliations, schedules, contracts, journal support, system reports, and review evidence. For finance leaders, strong PBC management improves audit readiness, financial reporting quality, cash flow visibility, and confidence in business performance.
