Mention the word ‘audit’ and the most common reaction is usually trepidation and anxiety. Even when it’s a standard annual compliance audit, it’s hard not to worry about having auditors going through your financials with their proverbial fine-toothed combs and asking uncomfortable questions. But an audit can and should be a positive process that gives you confidence in your business finances. So in addition to keeping your organisation compliant, how can audits improve performance?
- Peace of Mind. The main aim of any audit is to ensure that the shareholders have been provided with the peace of mind that they so desire. The focus of an audit is mainly to identify any issues that would affect the current and future capital that the shareholders have invested in the organisation.
- Strengthen Weaknesses. Many organisations are not aware of existing weaknesses in their internal processes. An audit of financial statements provides in-depth analysis of systems and processes, and therefore is extremely effective at highlighting inefficiencies and weaknesses. Audits catch errors and recommend changes the business can make to reduce risk and vulnerability. This not only applies to current weaknesses but also serves to recognise potential future concerns. Examples of risks which can be identified and minimised include fraud, employee error, health and safety issues, loss of key employees, IT system failure and loss of suppliers.
- Identify Opportunities. Audits identify opportunities to improve business performance as they highlight procedures that could be performed more efficiently. The systems and processes put in place by management are evaluated within the audit process, and recommendations for improvement are then made to the Directors/Managers.
- Provide Valuable Insights. Studies show that an increasing number of managers use audit results to make business decisions, as they provide independent insights evaluating business performance. An audit report includes objective analysis, recommendations and intuitive commentary. It is a unique chance to gain an outside perspective on how your organisation functions, and can be used to help the organisation achieve its objectives.
So take advantage of the opportunity that an audit provides to improve your organisation’s performance.
UHY Haines Norton Audit Director Bhavin Sanghavi and the UHY Haines Norton Audit team provide audits for organisations of all sizes and industries. To find out more about how we can help you, please contact Bhavin on (09) 839-0248 or email email@example.com.