Whether you’re a privately held business, a state run operation, or a publicly traded company, you most likely count upon an audit committee, or some variant thereof, when it comes to regular assessments of your organization’s financial condition. This committee will then try and get an unbiased and accurate appraisal of your company’s financial standing by outsourcing and relying on an external auditor when it comes to performing an in-depth and probing analysis of all your finances.
The auditor is the one who will inform you whether or not your corporate governance has an effective system in place, whether you have enough safeguards to prevent fraud, and take into account the accuracy and quality of your financial information is sufficient. When it comes right down to it, a good auditor is one that will provide an accurate report that can improve the effectiveness and efficiency of your business and add true value to your company.
Your auditor should then be able to help you achieve your goals by providing a well-organized and methodical process that will help you enhance and assess the usefulness of your risk management methods and governance.
Asking yourself a few questions ahead of time can help prepare for the audit, such as
- Does your current auditor deliver a cost-effective service that delivers value?
- Can your auditor provide an objective appraisal and reliable oversight of internal controls that other investors and a skeptical public are demanding because of past illusions?
If you even had to hesitate in answering these questions after reading them, you may want to consider bringing in an outside set of eyes to look over all of your financials.
If this is your situation, then:
- You are a rapidly-growing company that needs a global audit process for all of your financial.
- You must begin filing audited financial statements because you are a now a regulated corporation.
- You need help developing new oversight techniques because you are troubled that your audit committee does not understand the new direction your company is heading.
- You need to appoint a new auditor because you want your current auditing firm to provide only non-audit services.
- Your company’s geographic scope is not in line with what your current auditor sees and cannot guide you in the right direction.
- You need to effectively gauge the efficiency of your internal audit, risk management, and corporate governance procedures.
Colin Smith & Co specializes in accounting services, as well as taxation, auditing and business advisory services across a wide range of markets and sectors for businesses both large and small.