Most experts agree that the real value of the audit process goes far beyond ‘ticking a box’ to satisfy legal requirements. In fact, having independent and unbiased auditors – such as the team at C&N Audit Services in Brisbane – can confirm that an organisation’s claims about its financial position and the process behind these claims, are true and fair. This level of assurance is useful for a wide range of reasons and applications:-
In addition to satisfying legal requirements, the audit process has a number of beneficial applications for a variety of key stakeholders, and in some instances an audit would be required to satisfy their specific needs:-
- Investors and Shareholders
A trusted Auditor’s opinion and verification of how well run a company provides directors, shareholders and potential investors a higher level of assurance of the quality of their (potential) investment. Furthermore, the Audit Process can give the owners of the business assurance on their Internal Controls and Systems.
An independent Auditor evaluates and recommends changes to internal controls, for example with respect to authorisation of financial transactions to ensure there are clear rules and policies in place. This provides assurance of sound financial governance within the business and may help to minimise misuse or unauthorised access to company accounts and funds.
- Potential Investors, New Partners or Buyers in the Business Sale or Succession Planning Process. An independent Audit conducted by a registered company auditor is a vital tool in determining the value of shares or the value of the organisation as a whole. The findings from a quality audit report would be useful in due diligence processes in preparation for the sale of a business, mergers, acquisitions or entrance of a new managing director / partner.
- Company Accountants or Finance Directors
Findings from an independent auditor can provide assurance to financial controllers (CFO’s) that their processes and calculations are true and accurate, and assist them to make adjustments based on the recommendations in the Auditors Management Letter.
- Financial Institutions such as Banks, Credit Unions and some Insurance Providers. Lenders often request verification of financial statements by an independent party to satisfy loan requirements or bank lending covenants. An independent auditor is able to provide the assurance banks require for an organisation to get access to needed finance product(s).
- Legal and Industry Regulators
Last by not least, Audits satisfy requirements of the Australia Securities & Investment Commission (ASIC).