An audit provides a special eye for your business. A certified accountant gets an opportunity to do scrutiny of your business and using their specialized skills, they are able to identify things in your business that are very vital in your business. Your business investors and lenders would also want to see how your business is fairing through the book of accounts. To verify that, they’ll need an audit report for a specific period.
What are the services provided by the auditors?
Checking up the health of your business
With the auditors coming on a yearly basis, they provide your business with an annual exam. The exam often times uncovers some underlying problems that you were not aware of and prescribe measures that could help solve the problems. If you don’t have an auditor coming to your business, it would mean that the business would undergo problems that may lead to a collapse in the worst-case scenario. Get a professional auditing company on regular basis, this can be on a quarterly or annual basis.
After the auditor has completed examining your business, he/ she would prepare a report to indicate whether your business has been preparing financial reports according to the appropriate international accounting and reporting standards.
For the public companies, where ownership and securities are traded in the public market, the government requires that you prepare an annual audit, which is supposed to be done by a private firm.
The government does not necessarily require the business to produce audit reports. However, lenders like banks would require that you have your business audited so that they have the real picture of your business. Investors who want to partner with you would need to see the audit reports done by a corporate audit services provider before they can make a decision.
Whether you own public or a private business, you must ensure that your business is audited at least on an annual basis. This will give you an overview of the business and help your introduce strategies that would mitigate risks and increase profitability.