The Audit Process Step by Step

The audit process of a Mauritius company is a sequence of stages that starts when the auditor is engaged and ends when the signed report is delivered and the accounts are filed. Knowing the order helps directors plan the work, avoid last-minute requests and keep the audit timeline under control.

This page assumes your company needs an audit. If you are not sure, read Audit Exemption: Does Your Company Need an Audit? first. For the legal framework, see the overview of audit requirements for Mauritian companies.

The audit process at a glance

Step 1: appointing the auditor and the engagement letter

The audit begins with the choice of an auditor. Independence, experience with your type of business and availability matter more than a low quote. The practical side of selection is covered in choosing and appointing an auditor, and the cost drivers are explained in what an audit costs for a small Mauritius company.

Once the appointment is made, the auditor sends an engagement letter. It normally sets out:

• the financial period and the entity covered;
• the reporting framework, for example IFRS for SMEs or full IFRS;
• the respective responsibilities of the directors and the auditor;
• access to records, staff, bank and third parties;
• the expected timetable and the form of the reports.

Read it before signing. Directors remain responsible for preparing the financial statements; the auditor's role is to give an opinion on them, not to prepare them.

Step 2: planning and risk assessment

In the planning stage the auditor learns how the company earns its income, how it records transactions and where errors are most likely. Expect questions on the ownership structure, related parties, the main customers and suppliers, and the accounting system.

The auditor then sends a list of documents and schedules to prepare. This is the point where good bookkeeping pays off: a company whose ledgers are reconciled during the year answers the request list in days rather than weeks.

Step 3: fieldwork and testing

Fieldwork is the longest stage. The auditor tests the figures against evidence. Typical work includes:

• confirming bank balances directly with the bank;
• checking sales and purchase invoices against contracts and payments;
• verifying fixed assets, depreciation and any loans;
• reviewing payroll and statutory contributions;
• examining related-party balances and director loans;
• checking cut-off, so that transactions fall in the right period.

Answer queries in writing and promptly. Slow replies are the most common reason an audit timeline slips, and the auditor cannot sign until the open points are cleared.

Step 4: findings, adjustments and the management letter

When fieldwork ends, the auditor shares the points that need adjusting and any control weaknesses noticed. Some adjustments change the accounts; others are recorded as recommendations in a management letter. The board should discuss both, decide what to correct and keep a record of the decision.

Disagreements over accounting treatment are settled at this stage, before the opinion is drafted. The board also has to consider any matter that affects the opinion, such as uncertainty about the company continuing to operate.

Step 5: representation letter and approval of the accounts

Before signing, the auditor asks the directors for a representation letter. In it, the board confirms that it has given complete information, disclosed related parties and events after the year end, and accepts responsibility for the financial statements.

The directors then approve the statements, usually at a board meeting. Keep proper minutes: see board meetings of a Mauritian company. The accounts are normally presented to shareholders at the annual meeting.

Step 6: the signed report and filing

The auditor issues the report, which may be unmodified or contain a qualification, an emphasis of matter or another modification. The company then files in the way the law requires for its category.

Two filing rules from the Companies Act 2001 are worth noting:

• Outside small private companies, the company must file its financial statements with the Registrar within 28 days of their signature, or any other period set by the Registrar (s. 215, s. 211).
• Every company files an annual return once a year within 28 days of the date of its annual meeting, signed by a director or the secretary (s. 223). A small private company files one only if there is a change in its shareholding, board composition or other information (s. 223(1B)).

An Authorised Company has a separate route. Under section 71A(10) of the Financial Services Act, it files a financial summary with the FSC each year, no later than 6 months after the end of its financial year, in the form of the Ninth Schedule of the Companies Act. For group-level and licensed entities, see filing audited accounts with the Financial Services Commission.

Audit timeline: what drives the calendar

No single timetable fits every company. The elapsed time between the engagement letter and the signed report depends mainly on:

Ask the auditor for a written timetable at the planning stage and agree dates for the draft accounts, the board meeting and the filing. Working backwards from the filing deadline gives the real latest date for each step.

Audit preparation checklist

Have these items ready before fieldwork starts. The exact list will come from your auditor, so treat this as a starting point.

• Trial balance and general ledger for the whole financial year
• Bank statements and bank reconciliations at the year end
• Sales and purchase invoices, with supporting contracts
• Fixed asset register and depreciation workings
• Loan agreements, security documents and the register of charges
• Payroll records and proof of PAYE, CSG and NSF payments
• Tax computations and correspondence with the MRA
• Minutes and resolutions for the year, and the statutory registers
• Details of related parties and balances with directors
• Inventory count records, if the company holds stock
• Prior-year financial statements and the previous auditor's letter, if relevant
• A list of post-year-end events and known disputes

What the auditor must report

An auditor is a reporting person for anti-money laundering purposes. Under section 14 of the Financial Intelligence and Anti-Money Laundering Act (FIAMLA, consolidated text 2026), an auditor who knows of a suspicious transaction must report it to the FIU as soon as they become aware, and no later than 5 working days after the suspicion arose. This duty sits alongside the audit opinion and cannot be waived by the client. See suspicious transaction reports in Mauritius for how the process works.

Do not treat this as a reason to hold back information. Complete and consistent records are the best protection for directors.

Common causes of delay

• Records handed over in several instalments, with figures changing between versions.
• Missing support for related-party and director balances.
• Bank confirmations requested late.
• Accounts approved by the board only after the filing deadline is close.
• A change of accounting framework in the middle of the exercise.

If something has gone wrong in a past year, the consequences of late filing are set out in penalties for non-compliance in Mauritius. Whether any step applies in a different way to your company depends on its category and facts, so take advice from a qualified professional. To be put in touch with an FSC-licensed corporate service provider (Management Licence), use the contact form.