As a business owner, having to undergo an audit is not only stressful but it is a lot of work and takes up quite an amount of time every year. Due to this, business owners will be happy about the recent changes in the new Act. 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.
If your business is audited, your company can identify areas where it can improve its processes. It will also highlight areas that carry a lot of risk, so that you can be aware of them and make changes or put a plan in place to counteract possible results. An audited company is more likely to attract new investors too, which is often why people consider being voluntarily audited.
Here are some aspects to consider when getting an audit done:
- Your shareholders can benefit from an audit;
- You can improve your chances on winning a tender;
- Should you sell your business; an audit can help to justify your price.
An independent review is also something you might consider. They usually won’t be so thorough, and they will usually state that “……nothing has come to our attention that causes us to believe that these financial statements do not present fairly, in all material aspects…”. 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 provides professional auditing services to businesses of all sizes. They have 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.