Why have an audit?

Whether mandated by statutory, or if your company falls below the Companies Act size threshold for an audit, there are many benefits to conducting an audit of your financial statement. Although many organisations see audit as a necessary compliance evil, many entities choose to opt into voluntary audits because of the valuable feedback they receive that help to reduce errors and operate more efficiently.

Below are just some of the benefits of conducting an audit.

An independent perspective

When you are immersed in the everyday operations of an organisation it can become difficult to identify issues. When an independent auditor examines your organisation with fresh eyes they can see the entity from a different perspective. Where this is the case an auditor may be able to provide useful feedback and suggest new ideas to improve everyday systems and internal controls.

Risk awareness

Risk and governance play an important role in all organisations. Whether it is strategic, regulatory, operational or financial. An external audit can help identify risks in all of these four areas and provide you with the assurance that you have the appropriate systems and processes in place to take care of any potential risks.

Third-party requirements

Bank lenders

If you are an organisation who is looking to apply for a loan from a bank an audit will provide the lender with assurance and confidence that the organisation is in good financial shape. This may improve your chances of securing a loan. Bank lenders often include the requirement to deliver audited financial statements each year, so this may become a requirement once the loan is obtained.

Suppliers, clients and consumers

An unmodified audit report will also provide suppliers, clients and consumers more confidence to do business with you.

Identifies weaknesses in the accounting process

During the audit, the auditor will conduct an independent professional review of your accounting processes and will provide feedback to improve systems and controls to ensure the risk of fraud and accounting errors are minimised.

Accounting standards and tax legislation

Auditors will ensure that you are aware of the latest tax legislation and accounting standards so that your organisation is prepared for any changes to these rules.

Adds value to your business

Conducting an audit will help your organisations identify and solve issues that will improve the everyday operations of your organisation which could lead to value being added to your business.

How can we help?

An audit can provide your business with numerous benefits. If you are considering having an audit please do get in touch for a free initial meeting or visit our audit page for more information. Hawsons have offices in Sheffield, Doncaster, and Northampton. We have an established reputation for integrity and professional competence of which we are proud and committed to maintain. Our team of audit experts is fully trained on the latest developments in Auditing Standards which is becoming an increasingly specialised area.