Any business owner knows that it is a legal requirement for certain companies to be audited; this is also the case for public entities and government departments. This is mainly to assure shareholders and members that the company’s financials are accurate and verified.
There are different types of audits available, but there are a few differences between an audit for the public sector and one for private companies, which is why you should work with an audit team that understands the requirements and have experience in what you need. These two industries are exposed to different risks so it is important that you work with a firm that understands that. Private business owners need the assurance that their financials are in order and that they comply with all the legal guidelines and requirements that govern their industry.
Special Purpose Audits
A special purpose audit refers to the auditing of areas such as attorneys accounts and real estate agents’ trust accounts. It might also be needed for Royalties and donor funding. In addition to this, it is sometimes needed to audit franchise or licensing agreements and claims made towards incentives in industries such as tourism and manufacturing. New legislation also requires financial planners to obtain audit reports for certain instances, and auditors such as Colin Smith & Co is experienced in these audits.
Private sector audits should always be performed in terms of the Companies Act of South Africa, while public sector audits should conform to the Public Finance and Management Act and Treasury Regulations. This is to ensure one set of standards for all businesses in a particular market segment and to ensure that financial statements are accurate and trustworthy.
Colin Smith & CO has a unique approach that will identify their clients’ risks and will provide solutions that are tailored to a specific market environment to ensure quality and value auditing services. They strive to deliver efficient and cost-effective auditing services and endeavour to add value to your business wherever possible, through their audits.