It’s often stressful to work with auditing companies as they need to provide a thorough audit for your business, and this can be time consuming to do. However, there is some good news for small businesses. The new Act aims to provide relief for many private and non-profit companies in that they do not have to undergo an audit; this will only become necessary when it is in the public’s interest. Owner managed companies will not have to be audited, unless their Public Interest Score exceeds 350 points.
An audit allows a company to identify any areas within their business practices that need improvement and shows high-risk areas that need attention. In many cases, shareholders need the assurance that their investment is safe and that financial statements are accurate. An audited company is more likely to attract new investors too, which is often why people consider a voluntarily audit from auditing companies. Here are a few things to consider if you are thinking about having an audit done:
- Shareholders might require an audit;
- You can improve your chances on winning a tender;
- SARS will take more comfort in your financial statements;
- You can substantiate your selling price, if you want to sell the business in the future.
If you don’t want to undergo an audit, you can opt for an independent review as well. Auditing companies will do a general overview, but it won’t be as detailed as in an audit. But it will still allow you to see potential dangers in your business and its practices. An independent review will never be as thorough as an audit, so it might not have the same assuring effect. However, it is never a bad idea to undergo a review; you just need to consider your goals and needs.
Colin Smith & Co is one of the preferred auditing companies who provide auditing services to small, medium and large businesses. They have a unique approach to business, and will provide solutions that tailored to a specific market environment to ensure quality and value auditing services.