By Taylor Wade
Have you recently joined an accounting firm and been asked to prepare your first "PBC Request List," or perhaps your CPA firm sent you one as they prepare to review your company for the first time?
I, admittingly, didn't understand what a PBC Request List was until a few months ago, but I am here to share what I've learned about the challenges audit, tax, and security professionals encounter when working through an engagement. I hope it helps you on your journey.
The acronym PBC is short for "provided by client" or "prepared by client." Sometimes the terms "client request list", "information request list" (IRL), "PBC checklist", or "outstanding list" are used interchangeably; however, the accounting profession seems to use PBC Request List most often.
Audit, tax, and security engagements are complex, and a thoughtfully developed PBC list is like a project plan. It details the list of supporting information and documentation "prepared by a client" that professionals need to gather to perform their review. Professionals and their clients can also use a PBC Request List to track communication, like clarifying questions or comments that may arise throughout an engagement. Supporting documents or files are often requested (e.g., system-generated reports, screenshots, logs, invoices, etc.), but professionals may also use the client request list to perform inquiries, ask questions, and track responses. The exact type of information a professional requests will vary depending on the complexity and type of review. When a PBC Request List is tailored specifically for a client's business, it can help establish clear expectations and make the review process easier for everyone involved.
A good PBC Request List can be a source of truth before, during, and after a client engagement.
Ideally, professionals will send their clients an initial PBC Request List 30 to 60 days before the expected start date of their engagement. Sending the initial PBC Request List in advance helps avoid surprises and ensures clients understand what the professional requires so they can prepare it in advance.
Preferably, professionals will request most information from their clients in advance but will commonly add new requests as they perform the engagement. In addition, clients and professionals may add comments and questions throughout the engagement. Finally, as clients provide the requested information, professionals will update the list to highlight which requests clients have fulfilled and which remain outstanding.
Static Excel-based PBC RequestLists are often manually updated and circulated via email, sometimes multiple times per day throughout an engagement. If all parties do not closely monitor versions, this can cause unnecessary confusion. On the other hand, professionals may give their clients access to a secure dynamic request list at the beginning of an engagement. Dynamic request lists facilitate a single source of truth because automatic updates occur in real-time and allow all parties to view the current status at a glance.
Audit, tax, and security engagements are complex projects. Thoughtfully developed PBC lists and techniques are critical components of successful client engagements. When professionals and clients use PBC lists correctly, information is requested early to help clients understand what professionals need to perform their review. When clients provide the information requested at the agreed time, it helps ensure professionals have sufficient time to complete their assessment and issue their deliverables on schedule. A dynamic PBC Request List can help professionals and clients save time and improve the overall experience.
For more information about the products and services offered by AuditDashboard, visit https://www.auditdashboard.com/pbc-requests
To reduce waste and spark joy, Dave suggests utilizing the DOWNTIME model from Lean Six Sigma. When you reduce waste in a process, you can improve your team and client's experience. When we improve the overall experience, finding joy in our professional lives becomes far easier.Read moreRead more
Electronic signatures, or e-signatures, are becoming a standard method of conducting business transactions. While electronic signature laws vary by country or region, most have established their legality and enforceability. Here’s an overview for Australia, Canada, the European Union, and the United States.Read moreRead more
AuditDashboard takes a refreshing look at how accountants and auditors can go beyond delivering standard client service. The first step in exceeding expectations is to conscientiously evaluate your current offering, service levels, and touchpoints. Look in the mirror and contemplate what it is you have to offer. Reflection is critical to identify precisely why it is that someone should hire you.Read moreRead more