What is a PBC List? Complete Guide for Auditors
If you have worked on even a single audit engagement, you have encountered a PBC list. Short for "Prepared by Client," a PBC list is the document that tells the client exactly what information the audit team needs and when it is due. Despite its simplicity in concept, the PBC list is one of the most consequential tools in audit project management. A well-crafted list keeps the engagement on schedule. A poorly managed one creates delays, frustration, and wasted hours.
Understanding the PBC List
A PBC list is essentially a request for information. It itemizes every document, schedule, report, and piece of evidence that the auditor needs the client to provide. Each item typically includes a description of what is requested, the format it should be provided in, the due date, and the person responsible for delivering it.
PBC lists are used in both external and internal audits, though they are most commonly associated with financial statement audits. The list is usually sent to the client well before fieldwork begins so that the client has time to gather materials and the auditor can begin work promptly upon arrival.
Why PBC Lists Matter
The PBC list directly affects audit efficiency. When items are delivered on time and in the right format, fieldwork moves smoothly. When items are late, incomplete, or delivered in unusable formats, the entire engagement slows down. Auditors end up chasing documents instead of analyzing them.
Beyond scheduling, the PBC list also serves as a communication tool. It clarifies expectations between the audit team and the client, reducing the back-and-forth that arises from vague or ambiguous requests. A precise PBC list demonstrates professionalism and makes it easier for the client to comply.
What Goes on a PBC List
The specific items depend on the nature of the engagement, but common requests include:
Financial records such as trial balances, general ledger detail, bank statements, bank reconciliations, and subsidiary ledgers for accounts receivable, accounts payable, and fixed assets.
Supporting schedules including debt schedules, lease schedules, depreciation schedules, prepaid expense rollforwards, and accrued liability details.
Legal and governance documents such as board minutes, loan agreements, contracts, and legal correspondence.
Tax information including tax returns, tax provision workpapers, and correspondence with tax authorities.
HR and payroll data such as payroll registers, benefit plan documents, and employee census data for benefit plan audits.
System and process documentation including flowcharts, written policies, IT access reports, and change management logs for IT audits or SOX engagements.
Best Practices for Managing PBC Lists
Be specific in your requests. Instead of asking for "bank information," request "bank statements for all accounts for the period January 1 through December 31, including the final statement showing the year-end balance." Specificity reduces follow-up questions.
Set realistic deadlines. Stagger due dates based on when items are actually needed rather than requesting everything at once. This gives the client a manageable workload and ensures the most critical items arrive first.
Assign ownership on both sides. Each PBC item should have a designated preparer on the client side and a designated reviewer on the audit team. Clear ownership prevents items from falling through the cracks.
Track status actively. Maintain a log that shows whether each item has been requested, received, reviewed, or still outstanding. Share this tracker with the client regularly to keep both parties aligned.
Follow up early. Do not wait until the deadline passes to check on outstanding items. A brief reminder a few days before the due date is far more effective than a complaint after the fact.
Common PBC Challenges
The most frequent challenge is late delivery of requested items. This often stems from the client underestimating the time required to gather materials, or from key personnel being unavailable during the audit period. Starting the PBC process early and maintaining regular communication helps mitigate this risk.
Another common issue is receiving documents in formats that require manual conversion, such as scanned PDFs instead of spreadsheets. Specifying the desired format upfront and using tools that can extract data from various document types reduces this friction considerably.
Simplify your PBC workflow with Blast Audit — the Excel add-in that extracts and matches audit documents automatically.