Benefits of an Audit
of an audit are numerous. Audits can improve a company’s
efficiency and profitability by helping the management better
understand their own working and financial systems. The management,
as well as shareholders, suppliers and financers, are also assured
that the risks in their organisation are well-studied, and effective
systems are in place to handle them.
Audits can also
identify areas in an organisation’s financial
structure that need improvement, and how to implement the proper
changes and adjustments. Having an audit also lessens the risk
and therefore the cost of capital.
An audit can
uncover inaccuracies and discrepancies within an organisation’s
records, which may be indications of weak financial organisation
or even internal fraud, although fraud detection is not the main
purpose of an audit.
of an audit:
and understand your company’s financial records.
key areas for improvement in your company.
- Assess risks,
economy, efficiency and quality.
- Evaluate new
- Uncover fraudulent
or other illegal activities within your company.
- Reinforce and
strengthen internal control.
a unique broad perspective of a company which they apply to deliver
effective analyses and
information. Management can use this information to
evaluate the company
measures necessary to meet their objectives.