IPO Audit Readiness Checklist
This is the checklist auditors and the CPAB look for before fieldwork on an IPO or reporting-issuer audit — organized by phase and anchored to the exact standard each item comes from. Working through it before the auditor arrives is the single biggest lever a company controls over its audit fee and timeline.
1 · Engagement & scoping
- Signed, current-year engagement letter with scope, fees, and reporting framework agreed. CAS 210 →
- Reporting framework confirmed (IFRS for reporting issuers) and applied consistently.
- Auditor independence assessed; no prohibited non-audit services in the look-back period.
- First-year audit: opening balances and prior-period comparatives supported. CAS 510 →
2 · Risk & internal control
- Risk assessment documented at the assertion level for material accounts. CAS 315 →
- ICFR / DC&P design documented and, where required, operating effectiveness evidenced. NI 52-109 →
- Fraud risk considered; management-override controls identified and tested. CAS 240 →
- IT general controls (access, change, operations) mapped for in-scope systems.
3 · Evidence & estimates
- Sufficient appropriate audit evidence assembled for each material assertion. CAS 500 →
- Accounting estimates (ECL, impairment, share-based comp) supported with methodology and inputs. CAS 540 →
- Revenue recognition tested against the five-step model with cutoff evidence.
- Related-party transactions identified, priced, and disclosed.
4 · Going concern & subsequent events
- Going-concern assessment covering at least 12 months from the reporting date. CAS 570 →
- Subsequent events reviewed through the audit report date; disclosures updated.
- Management representation letter drafted and aligned to the file.
5 · Reporting & sign-off
- Auditor's report form correct for the framework (CAS 700 / PCAOB AS 3101 for US filings). CAS 700 →
- Key audit matters identified and drafted where reporting requires them.
- Engagement quality review (EQR) completed before the report is released.
- Prior-period CPAB inspection findings remediated and documented.
Score your file against all of this automatically
Auditus.ai runs every checkpoint above against your actual financials and supporting documents, cites the standard behind each gap, and estimates the audit-fee impact of leaving it unfixed.
Frequently asked questions
What is an IPO audit readiness checklist?
It is the set of checkpoints an auditor and the CPAB look for before fieldwork on an IPO or reporting-issuer audit — engagement scoping, risk and ICFR, evidence and estimates, going concern, and reporting. Working through it before the auditor arrives is the single biggest lever a company controls over its audit fee and timeline.
When should we start preparing for an IPO audit?
As early as possible — ideally 6 to 12 months before filing. Most fee overruns and timing slips come from unremediated readiness gaps (missing reconciliations, weak ICFR documentation, unsupported estimates), all of which are fixable before fieldwork begins.
Which standards apply to a Canadian IPO audit?
Canadian Auditing Standards (CAS) govern the audit; IFRS governs the financial statements; and National Instruments (notably NI 52-109 for ICFR certification) govern securities filings. US cross-listings add PCAOB standards and SEC S-1 requirements.
Related: IPO audit readiness overview · Audit standards library