Skip to main content

Turning Cases into Code: Practical ChatGPT Prompts for Auditors

February 02, 2026

By LaMichelle Hecht, CPA

After more than 10 years auditing everything from small nonprofits to government-funded entities to Fortune 500 companies, I’ve learned one thing for certain: auditors are translators. We take confusing situations, incomplete documents, complicated processes, and sometimes chaotic financial stories and turn them into clarity.

Auditors bring order.
Auditors bring confidence.
Auditors bring truth.

And now, with the rise of AI tools like ChatGPT, auditors also have the opportunity to bring efficiency like never before.

This article isn’t about replacing auditors. It’s about equipping them — with better prompts, stronger workflows, and practical, real-world examples of how AI can help us work smarter without ever compromising professional skepticism or judgment.

Prompts matter even more than the platform

AI tools evolve. Prompting skill endures. As auditors, we need more than quick answers. We need things like tables, templates, authoritative citations, codification references, internal control explanations, staff-ready instructions, and client-ready language.

If the prompt isn’t complete, the output won’t be either. The good news? With better prompts, ChatGPT can deliver nearly workpaper-ready content the first time — and significantly reduce follow-up.

Below are real audit cases and the exact prompts I use to transform them into strong starting points for deliverables.

Case 1: Turning a messy process into a clear walkthrough

A construction company engagement required walkthrough testing over communication practices, conflict resolution and management oversight — controls that are often informal and inconsistent. Here is the prompt that gives me clarity, structure and a workpaper-ready format without multiple iterations:

Prompt: Walkthrough script (with tables, red flags, & citations)

“Create a complete walkthrough testing script for the communication and conflict resolution process for a construction company.

Include the following:

  • A table showing control objectives, related controls and required evidence.
  • Step-by-step employee interview questions.
  • A sample narrative staff can copy/paste into the workpaper.
  • A list of red flags and indicators of control weakness.
  • Suggestions for extended procedures if deficiencies are identified.
  • Citations to relevant COSO principles.
  • A ‘What to Upload to the Workpaper’ checklist.
  • A reviewer checklist.

Format it exactly as if it is going into an electronic workpaper system and use an authoritative but clear tone.”

This gives the team structure, clarity and confidence — without hours of drafting.

Case 2: First-time audit clients & plain-language communication

Many of my nonprofit and mental health facility clients are experiencing their very first audit. Before ChatGPT, I would spend hours rewriting prepared-by-client (PBC) lists so they made sense to the client. Now, I can produce a supportive, accurate version and ask ChatGPT to identify what’s missing.

Prompt: Rewrite PBC list in warm, plain English (with client details & missing-item feedback)

“Rewrite the following PBC list in plain, warm, supportive language for a first-time audit client.

Client details (use these to tailor the language):

  • Annual revenue: $______.
  • Reporting framework: FASB / GASB / other.
  • Whether the client is subject to Yellow Book standards.
  • Whether the client requires a Single Audit (2 CFR 200 Subpart F).
  • Industry (nonprofit, construction, mental health, etc.).
  • Known client concerns or questions.

Rewrite using these requirements:

  • Keep technical meaning accurate.
  • Add simple examples for each item.
  • Create a table with Item Requested, What This Means, and Why We Need It.
  • Add a brief FAQ at the bottom.
  • Add a section titled ‘What Happens After You Upload These Items.’
  • Use a warm, supportive tone.

IMPORTANT: After rewriting the list, provide feedback on whether:

  • Any required items are missing.
  • Any items need clearer examples.
  • Any steps should be broken down further for a first-time auditee.

Here is the list:
[paste list]”

This helps you send a PBC list that is accurate and empowering.

Case 3: Grant compliance & federal guidelines

For nonprofits relying on federal and state grants, compliance is not optional — it’s survival. I regularly use ChatGPT to help draft grant compliance testing programs that cite Uniform Guidance and highlight common risks.

Prompt: Grant compliance testing program (with 2 CFR 200 references)

“Draft a grant compliance testing program for a nonprofit receiving federal and state reimbursement grants.

Include:

  • Allowable/unallowable cost procedures.
  • Time & effort testing.
  • Procurement requirements.
  • Reporting requirements.
  • Specific citations to the relevant sections of 2 CFR 200.
  • A table of risks and controls.
  • A sample workpaper template.
  • A section titled ‘Common Findings & How to Prevent Them.’

Format using standard audit-program structure.”

This turns technical regulations into structured, audit-ready procedures.

Case 4: Internal controls manuals, SOPs & policies

When a client realizes you understand internal controls deeply, they start asking you to write everything — bank reconciliation policies, cost allocation procedures, timekeeping SOPs, revising reinstatement processes, onboarding/offboarding steps, conflict-of-interest policies, and more.

ChatGPT can absolutely help, but only if you approach it the right way.

The most common mistake?Trying to create an entire manual in one prompt. That guarantees gaps and inconsistencies.

The better approach:Tell ChatGPT up front that you will send one process at a time and want a final compiled manual at the end — within ONE ongoing conversation. This preserves continuity and produces a high-quality manual.

Prompt: SOP drafting (with codification, ICs, & compilation instructions)

“We are creating a complete Internal Control Manual. I will provide each process one at a time in this same conversation. For each process, draft a complete SOP. At the end, I will ask you to compile all SOPs into one manual.

For this specific process: [insert process]

Draft a full SOP including:

  • Purpose.
  • Scope.
  • Definitions.
  • Roles & responsibilities.
  • Detailed step-by-step procedures.
  • Internal control points & segregation of duties.
  • A flowchart (ASCII acceptable).
  • FASB ASC or GASB references (cite exact numbers).
  • Any regulatory sources (2 CFR 200, Yellow Book, state rules).
  • ‘Common Errors to Avoid.’
  • ‘Documentation Requirements & Retention.’
  • A template form at the end.

At the conclusion of all SOPs, compile them into:

  • A complete internal control manual.
  • A table of contents.
  • Standardized formatting.
  • A glossary.
  • Cross-references where processes overlap.”

This process-by-process method produces a manual you can confidently hand to any board, CFO or auditor.

Case 5: Coaching staff & improving performance

Managing audit teams means more than reviewing workpapers — sometimes we’re helping people grow. ChatGPT can help draft clear, structured, supportive performance plans.

Prompt: Performance improvement plan (with goals & examples)

“Draft a two-week performance improvement plan for a senior accountant who is:

  • Missing due dates.
  • Asking entry-level questions instead of researching.
  • Pushing back on instructions.

Include:

  • Measurable goals.
  • A daily expectations table.
  • Examples of acceptable vs. unacceptable behavior.
  • A progress-tracking sheet.
  • A script for the manager to introduce the PIP.
  • A signature section.”

This creates consistency and removes emotional friction from difficult conversations.

Case 6: Workpaper templates, tie-outs & schedules

Sometimes, all you need is a clean table.

Prompt: Spreadsheet-style workpaper template

“Create a spreadsheet-style workpaper template for testing ______. Include:

  • Tick marks.
  • Tie-out columns.
  • Variance column.
  • Preparer & reviewer sign-off.
  • Sample size table.
  • Instructions for staff inside the workpaper.
  • A section titled ‘Common Reviewer Notes’.”

This immediately elevates the quality of staff documentation.

ChatGPT is a game-changer for audit efficiency

At its heart, auditing is about clarity, consistency and confidence. ChatGPT doesn’t change that — it enhances it. Used well, ChatGPT helps auditors:

  • Draft faster.
  • Test smarter.
  • Train staff more effectively.
  • Improve communication with clients.
  • Spend more time applying real professional judgment.

AI doesn’t replace the auditor, it removes the noise so the auditor can think clearly, move efficiently and operate at their highest level. With intentional, well-crafted prompts, ChatGPT becomes one of the most powerful tools in the audit workflow —not because it does the work for us, but because it enables us to do our best work.

LaMichelle Hecht, CPA, is the founder and CEO of Overhead Solutions Group, a SWaM-certified accounting firm that helps mission-driven organizations simplify financials, ensure compliance and build sustainable systems. A licensed CPA in Virginia, Illinois, New Jersey and Washington, D.C., she brings over a decade of experience across government, nonprofit and corporate sectors and is known for her strategic insight, technical expertise and commitment to service. LaMichelle is also a bilingual speaker (English/Spanish), recognized for helping leaders navigate complex regulatory landscapes with clarity and confidence.