Preparing for a Bank or Concurrent Audit: What Management Should Know

Lender-mandated audits are not adversarial. They exist to give the bank comfort that security, drawing power and reporting are reliable – and well-prepared borrowers are often rewarded with smoother renewals.

Keep stock and debtor statements current

Mismatches between submitted statements and books are the single most common observation. Reconcile monthly and keep supporting ageing reports ready.

Track covenants proactively

Maintain a simple covenant tracker – current ratio, DSCR, leverage – and flag breaches to the bank before they find them.

Document end-use of funds

For term loans and project finance, keep invoices, bank trails and progress reports mapped to each disbursement.