The businesses that find audit season painless share one habit: they don't treat audit preparation as a year-end sprint — they maintain a running "permanent file" all year.
What a Permanent File Contains
- Company registration certificate, MOA/AOA, and PAN/VAT certificates
- Board and AGM minutes as they happen, not reconstructed later
- Monthly bank reconciliations, filed immediately after completion
- Fixed asset register, updated with each addition or disposal
- Contracts and agreements relevant to material transactions
Why This Speeds Up Audit
When an auditor requests supporting documentation, the difference between "here's the folder" and "let me dig through a year of emails and physical files" is often the difference between a 2-week audit and a 6-week one.
Acting as Liaison With Auditors
A well-maintained permanent file also lets your bookkeeper or accountant act as an effective liaison with external auditors — answering routine documentation questions directly, rather than every query bouncing back to already-busy management.
The Cost Difference
Audit firms typically price engagements partly on expected time — a business with a clean permanent file is often quoted lower simply because the fieldwork is faster and lower-risk.
Company Sathi maintains permanent audit files for clients throughout the year, not just before filing deadlines.
