If you manage a medium or large corporation you can definitely benefit from obtaining an external audit. There are many reasons why you might want this, and there are a lot of benefits to any audit, especially for growing businesses. Audits can be performed once a year or as needed, depending in your specific industry and your business.
What is an External Audit?
An external audit refers to a professional review of your company’s financial statements by someone outside and independent of your business. External audits is very important in terms of the financial oversight of your business because they are 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 they are required by law, 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 will feature various things, among others a report that outlines 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 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.
If you are looking for a professional external audit for your business, look no further than CA Management Consulting. We specialise in audits, accountancy, tax and advisory services across a range of markets and sectors and can assist with income tax returns.