Financial audit is an important tool for business owners looking to achieve their objectives in the required time period. While performing a financial audit, an auditor is required to obtain an understanding of the company’s business and internal controls, an auditor will become aware of and recommend ways that the entity can improve its internal controls over financial reporting or profitability. The auditors’ are also required to preform certain procedures on company’s policies and procedures related to fraud prevention. Any suggestion from auditors will help improve the policies and procedure to prevent fraud. However, you’ll need to choose accounting services that not only specializes in carrying out an effective financial audit but also help you monitor the efficiency and effectiveness of such an audit. Apart from choosing the best accounting services, what steps you can take to enhance the effectiveness of such an audit? Let’s have a look:
- Commitment: As a business owner, you have to make sure that everyone in the organization, including the senior management, is fully committed to this critical process. Without the involvement, encouragement and support of everyone, a financial audit will just be a waste of time and money.
- Anticipate the needs of stakeholders: So, what do you think is the most important thing that most stakeholders want from a financial audit – information and more information. They need an assurance that the management has necessary and effective processes in place to achieve desired financial goals and manage significant risks in future. In addition, the financial audit team has to be responsive to the changing nature of risks and make sure that the strategies remain relevant in the present and future scenario.
- Keep it simple: While it’s true that financial auditors are well versed with all the technical jargon used in financial audit, most of the customers and staff working in an organization do not comprehend most of these terms at all. In order to get the point across, auditors should do everything in their hands to make the reports as simple as possible. If the auditors can take time to explain the meaning of technical terms, such as ‘high-risk’ or ‘significant deficiency’ early on, they have to spend much less time in answering a lot of questions from their audience later on.
For trusted financial audit services in Sydney, contact DSV Partners on 02 9633 4893 or email us at firstname.lastname@example.org today!
Image Source: Ken Teegardin / Flickr