1. Reduce risks & detects frauds
No matter how well you know the sector of your business, you cannot always anticipate the potential risks related to it.
An audit can help you spot potential risks and draw a plan to reduce them for a better future for your business.
As mentioned above, auditing examines internal controls and records of your business. An effective internal audit function will check:
Existing controls are sufficient
What improvements can be made
Are existing controls being followed and practised
Highlight any departures and deviations
Rank these deviations- critical or non-critical
Report to the senior management- usually audit committee
In case there has been a mistake or an error, even the smallest error, it will be sought out.
Audit procedures are maintenance checks for the business. It helps you detect errors in numbers, calculations, business records or internal controls.
In addition, any frauds can also be identified by having an effective internal audit function. It is a preventive control. Thus, with an audit, you can make sure credibility to your business in London.
2. Gives assurance to your investors
You may consider running an audit to provide assurance to investors and shareholders. As both like to invest in a business that is not only well run but well maintained.
If you have family-owned businesses, then shareholders are not necessarily involved in the day-to-day running of the business.
An audit report will help you provide assurance to the shareholders that the business is recording transactions as it should.
Also, it is crucial for businesses to be transparent with the auditor as they are not there to judge individuals’ performance but rather to support and guide your business while maintaining their independent perspective.
For instance, audited business data can be brought ahead in the case of alteration of capital and valuation of goodwill on the retirement and the passing of the partner.
- Support business growth & foster decision making
Businesses must move forward, and if they don’t, they won’t be here tomorrow.
Even the businesses that choose to downsize still have to stay ahead of the competitors and keep up with the latest technology. An internal audit can help you discover areas that require refocusing.
To ensure the health and wellbeing of your business, effective auditing is critical.
Based on their finding and discoveries in records, auditors can give a solid recommendation with respect to the enhancement of your business.
By choosing audit services, you can recognise key areas for development in your business.