Audit and assurance: what it means for your business

Transparency, compliance, and operational efficiency are paramount for maintaining sustainable growth and success. Audit and assurance services are crucial tools for achieving these objectives.

An audit officer evaluates a company’s financial practices, internal controls, and adherence to regulatory requirements through these services. Their findings can help you make informed business decisions and strengthen your financial practices.

Read on to learn more about how audit and assurance services can help your company.


What can you expect from audit and assurance services?

Audit and assurance is a highly specialised service requiring a trained professional to complete. If you voluntarily arrange an audit or are required to arrange one by law, you must seek the help of an external, registered auditor. This ensures accuracy as well as transparency during the process. Here are the services you can expect them to complete:

  • Financial statement audit: A thorough examination of your company’s financial statements to ensure they are accurate and comply with all relevant accounting and regulatory standards.
  • Internal audit: An independent assessment of a company’s internal controls, risk management processes, and governance structures. Internal audits help identify weaknesses and inefficiencies.
  • Compliance audit: Verification of a company’s adherence to relevant laws, regulations, and industry standards.


When is a company required to complete an audit?

Companies are typically legally required to arrange and complete an audit when two of the following criteria apply to them:

  • the company has more than £10.2 million in turnover
  • the company has assets of over £5.1 million
  • the company has over 50 employees.

Whether a company meets the criteria above or not, if shareholders who own 10% or more of the business formally request an audit, the company must arrange one.

This means that you might be reading this, realise you are exempt from an audit, and fail to the purpose of voluntarily arranging one for your company. However, any company, required of size, will benefit from an audit. Below are some of these benefits.


Why you should consider audit and assurance services

There are plenty of reasons why you should consider audit and assurance services for your company:

  • Enhancing transparency: By examining financial records and internal controls, these services can foster trust in stakeholders such as investors, creditors and regulatory bodies. This can help you attract investment and win loans.
  • Improving compliance: Audits ensure that a business operates according to applicable laws and regulations, reducing the risk of non-compliance penalties and legal consequences.
  • Identifying risks and opportunities: Audit services can drive operational efficiency within organisations, as they allow companies to identify inefficiencies, bottlenecks, and weaknesses that impede performance. This is the first step in devising a strategy that streamlines operations, reduces costs, and enhances productivity. At the same time, audits might highlight opportunities for you to exploit.
  • Promoting ethical conduct: Audit and assurance services contribute to a culture of integrity and ethical conduct within your company, helping you far into the future.


Making the most of audits and assurance services

For companies considering audit and assurance services, we have a couple of recommendations to help you make the most of them:

  • Embrace regular audits: Prioritise regular audits to ensure compliance with legal frameworks and maintain a clear understanding of your company’s health.
  • Prioritise transparency: Maintain open communication with stakeholders regarding audit findings, recommendations, and actions. This will further build trust and confidence.
  • Engage experienced professionals: Not all audit and assurance services are built equally. Partner with reputable firms that are experienced and well-equipped for the task.

Audit and assurance services are incredibly important for any company. They help you remain compliant, identify risks, promote transparency, and build long-term financial plans.

If you’re looking for an auditor who can help you, regardless of your industry, contact us. We’re determined to help.

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