As a cost saving, Business Owners may sometime be tempted to only complete financial statements; without having a true appreciation of the importance of auditing their business. While financial statements provide great insight into your Company's financial position, a financial audit provides an additional level of comfort about your financial position being as described.
Audits cater for:
Compliance. An audit ensures that your business is meeting statutory requirements and regulations within the scope of your industry. It gives stakeholders and shareholders the peace of mind that the Company is being compliant as non compliance can often result in hefty fines and damage to the reputation of the Company/ Owners.
Credibility. If you're ever in a position where you need to pursue lending services from the Bank for your Company or want to woo investors or sell your business in the future, audited accounts provide the security that your accounting is free from material misstatements or errors.
Fraud detection. Often times an employer or business owner just can't seem to put a finger on why the numbers quite simply Just. Don't. Add. Up. Workplace fraud can go undetected for years and an audit is an effective tool in identifying weaknesses within a Company's systems and controls AND providing recommendations that may identify existing fraud or prevent fraud from occurring.
Budgeting. Having your financials audited confirms its accuracy. The audit process examines key aspects of income, expenditure, assets and liabilities that gives credence to the actual numbers incurred. These can be then confidently be measured against past budgets and used for better forward financial planning and budgeting.
Risk. Simply put, Auditors assess whether a Company's procedures and policies are being adhered to and identify the various types of risks that the Company can be exposed to. Understanding these risks allows the Company to make more informed analyses and de-risk certain decisions.
Audits provide the highest level of assurance that the financial position presented of your Company is indeed a true and fair one and ultimately increases stakeholder confidence.
For more,
click here to reach out.