If you are running your own medium or large organisation, chances are that you have considered obtaining an external audit at some point. There are many benefits to external audits, and working with a professional auditing firm is the best option for any growing business.
An external audit refers to a review of your company’s financial statements by someone who is not affiliated with your company or agency. External audits play a big role in the financial oversight of businesses and governments because they are being conducted by outside individuals and therefore provide an unbiased opinion. External audits can be performed annually, or at regular intervals as required by management or shareholders. In most cases, the law requires them, at least once a year for most entities. For governments, an external audit will include a review of the budget, the allocation of funds and the actual expenses to ensure the budgeted revenues and expenses were correctly compiled and used.
An external audit by an auditing firm will feature a report outlining the auditor’s findings regarding your business; this will generally be a summary of the overall validity of your financial statements and other documents you presented. Should the audit report uncover any issues or discrepancies in your financial statements, they will be noted and include suggestions on how you can correct them. The audit will often include financial suggestions for your business as ways to improve its overall financial standing and accounting practices.
Having your company audited by an auditing firm has many benefits, including the ability to confirm your financial position to shareholders and management. Having passed an external audit will also reflect positive on your reputation and this might come in handy should you choose to sell your business at some point, or want to attract new investors. Audits are always beneficial to do, although they might not be legally required for your business.
Colin Smith & CO is a professional auditing firm that strive to deliver efficient and cost-effective auditing services and endeavor to add value to your business wherever possible, through their audit processes.