In many cases, businesses believe that an audit is only necessary when required by law or requested by a third party, such as during a sale for due diligence.
However, an audit can provide a plethora of benefits to your business performance that other reporting methods cannot.
Conducting an audit can offer new and in-depth insights into a business, including its processes and the markets in which it operates.
Key information provided by an audit may include industry and market comments, company process and policy comments, and identification of inefficiencies and risks.
When combined with other financial information a business may have, such as key performance indicators from year end or management accounts, an audit can provide a clear view of financial health, highlighting potential opportunities and weaknesses.
This level of business intelligence is crucial for business owners making critical decisions about the future, and implementing appropriate measures can enhance the resilience of the business over time.
Although there are no fixed guidelines for conducting an audit, it usually involves five stages that aid in the evaluation of a business’s performance:
- Planning
- Risk assessment
- Audit Strategy
- Gathering evidence
- Finalisation
The process can vary based on the auditor’s preference, but the outcome should be feedback detailing a company’s current risks and a clear picture of the company’s finances.
If you would like to know more about our audit services, please contact your Seymour Taylor representative today or email enquiries@stca.co.uk or call 01494 552100.
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 16 March 2023.