Audit services are much more than just a required reporting obligation.
Through the evaluation of a company’s accounting controls and business practices, we can often provide recommendations to increase profitability and accomplish objectives.
These recommendations often result in the production of more accurate and timely information and management reports.
Audit and Assurance Benefits
Through the realization of an audit the owner will be able to receive a considerable level of assurance in relation to the current state of affairs of the various departments that make up the organization.
Detection and Prevention of Fraud
Errors whether committed innocently or deliberately are discovered by the audit process. When these errors are encountered and duly noted in the auditor’s report this serves as a deterrent, due to the fact that because the accounts are subject to future independent audits detection is a certainty. Similarly, when frauds are discovered the inclusion of these findings in the final report result in a considerable reduction in the risk of re-occurrence.
Verification of Books
Another advantage of audit is the verification of the financial reports with what has been registered within the legal accounting books of an organization, this helps in maintaining consistently updated records.
Auditing is very useful in obtaining the independent opinion of the auditor about the financial condition of an organization. If the accounts are audited by an independent auditor, the final report will be true and fair in all respects. This independent opinion will be of considerable importance and usefulness for the management of the company especially during the decision making process.
The audit process will establish a moral check on the minds of the non-accounting staff employed in the organization. They will not be able to commit any irregularity, as they will be made aware of the fact that the accounts will be audited in the near future and that assertive action will be taken against them if any irregularity is discovered. As a result the realization of regular audits prevents the occurrence of a irregularity even before it happens and the staff of the organization then becomes more active and responsible.
Reinforce Internal Controls
Since the auditing exercise involves the review of internal control system, the independent auditor will identify any deficiencies with internal controls and can provide invaluable recommendations to improve these systems.