Not every business in the UK is required by law to conduct regular audits, in fact, very few beyond the very largest companies are but does that mean an external audit by qualified auditors should be avoided?
While there is certainly a cost involved in conducting an audit, they can also bring incredible insight and value to what you do.
An audit can help:
- Enhance systems and controls – A key function of many audits is to get a deeper understanding of your organisation and how it is run. Auditors can approach your company as an outsider and make recommendations for changes to your existing financial systems and approaches, using their considerable expertise and experience, so that your organisation is more effective.
- Provide credibility – As a business, you will often be required to demonstrate to shareholders, investors and lenders that you represent minimal risk to them and their position. Conducting an audience can give others confidence in your finance so that you can raise the funds needed for growth or demonstrate that your business is ready for sale.
- Spot errors and fraud -Although it may not be the primary function of an auditor, most talented auditors will be able to use the process to identify errors in accounting, or more obvious cases of fraud, which could damage your business, its finance and reputation.
- Deal with weakness – Your auditor, having conducted an audit, should be able to highlight potential areas of risk or weakness within your organisation, which will allow you to find solutions that tackle these issues. This includes potential financial obligations or dependencies in existing processes, relationships or contracts.
- Deliver insight – If your business struggles to make commercially driven decisions or it is facing a particular conundrum, the figures and information delivered by an audit could help you to make better decisions and achieve better outcomes based on objectivity rather than subjectivity.
Does your company or organisation require an audit? Please contact your Seymour Taylor representative today or email enquiries@stca.co.uk or call 01494552100.
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 19 October 2022.