Business Efficiencies : The Importance of auditing your company and finding a good auditor

So why have an audit? 

It may simply be a compliance exercise and the company has breached the threshold for having an audit.  The table below shows the current size threshold criteria:

If two of the criteria above are breached for two consecutive years, then a company will require an audit.

There may be other reasons for thinking of having an audit:

• Does the bank need assurance over the financial statements?
• Is the company trying to get access to grant funding?
• Does the management team want the staff to be scrutinised by an external independent review?
• Is the company part of a larger group?

Whatever the reason, it is important that your auditor has the requisite qualities to audit your company.  In particular the auditor should; be recognised as being knowledgeable in your industry, be held to account and regulated by the appropriate authorities and the auditor shows the characteristics that are vital in audit such as; integrity, objectivity and independence.

A good auditor will not just go through the motions but will actively look at where weaknesses can arise and make recommendations on how to implement systems and controls to ensure the business is robust.

As technology advances, it is important that your auditor has an understanding of where the threats in the business may lie.  The auditor should be capable of reviewing both the systems and transactions that underpin the business.  Audit is not just providing assurance over the balances in the accounts but also looking at the risks to the business.

Audit shouldn’t just be viewed as a cost to an organisation but should be seen as a way to have a health check over the operations of the company.  Building a relationship with a trusted advisor can add value to the management team and provide confidence that the company is in a good position to drive the company forward.

If you would like more guidance and understanding of the audit process, please do not hesitate to reach out.