Audit and Accounts- Spotting The Potential Dangers

Accounting and Financial auditing are both essential business functions which, while totally different concepts, can connect with one another at times. Accounting audits can benefit small and large businesses alike, but auditing is generally reserved for larger, more established businesses. 

In this post we will look at what a tax auditor does and look at the different types of audits that can be carried out.

What does a tax auditor do?

An accounting audit by definition is a systematic review and investigation of the policies, procedures and systems put in place to record, store and present financial data within a company. Auditors are fully trained to review areas of that need improvement and spot potential dangers or incidents of unethical conduct. Auditors will:

• Begin by analyzing the systems put in place to ensure that the accounting department receives all transaction documents in a timely manner.
• Review the accounting system in depth to ensure that all necessary accounts are present and maintained accurately.
• Review financial statements and the processes used to prepare financial statements.

Although accounting audits can be disrupt to a business they spot and address potential weaknesses which benefit the business in the long run.  

Non statutory audit & Statutory audit

Even though many businesses don’t need to have an audit by law, many of our clients still choose to have one, as there are tremendous benefits available.

Indeed, there are strong commercial arguments for having an audit, such as getting the best price when you come to sell, keeping banks happy when you need help with finance, keeping credit insurers and suppliers happy, but most of all, giving you the comfort of knowing that you have strong controls and accurate results.

That being said an audit’s no less valuable because it’s been forced upon you by law. You’ll end up with a wealth of information that can be used to fine tune your business and boost your profits to the max.  

Audit Firm Hull

Hull Businesses can depend on themselves or seek outside guidance when performing an accounting auditing. Small businesses can often benefit from relying on a third-party accounting firm such as Haines Watts set up their accounts and handle their accounting needs. Even large businesses can benefit from hiring an outside auditing firm, and publicly traded corporations are actually required by law to obtain third-party audits on a regular basis.

To find out more about how Haines Watts can support you and your business

Contact Us today or find your local Haines Watts office