What should you do to prepare? Well, definitely don't panic and waste time photocopying evidence. You'll have been setting targets, planning, teaching, assessing, managing pupils, using individual education plans, working with support staff - in fact, everything covered by the qualified teacher status and induction standards.
You can't "fail" your first or second term on induction. It's only the judgment at the end of the third term that really matters. However, if progress is dodgy the school, local education authority and you need to ensure that support and monitoring mechanisms are in place to give you every possible chance. Think positively: talk to your induction tutor about what you're doing well and what small steps you need to make to address things that need to be better.
The report should outline your strengths and areas for further development along with the targets and support planned under the three headings of the standards: professional values and practice; knowledge and understanding; and teaching.
It will help your induction tutor if you make notes about how you think you're doing against the standards. During the assessment meeting suggest additions or revisions to the wording on the form. The headteacher is responsible for ticking the kinds of monitoring and support you have received: the 10 per cent reduced timetable; your career entry and development profile discussed; a plan of support; discussions with your induction tutor to set targets and review progress; observations of your teaching every half term; observations by you of other teachers; and an assessment meeting. If they haven't all happened, don't allow them to be ticked. It's the only way that your local authority will know you're not getting your entitlement.
The assessment process should leave you clear about your strengths and what to work on - make it happen!
The induction assessment form is available at www.teachernet.gov.ukprofessionaldevelopmentnqtinduction