Do I really need an audit?
July 11, 2017
Common questions we get asked by clients are ‘’What are the benefits of having an audit?’’ or ‘’Do I really need to have an audit?’’. Typically we get asked this by two types of clients, those that have previously been required to have an audit but are no longer required to, and fast growth clients that may be required to have an audit in the near future.
There is a lot of stigma attached to having an audit and they are often viewed negatively by businesses. They often take the view that it’s an unnecessary cost or perhaps a waste of management or staff time, but what about the benefits that it brings not only to the company and its management, its shareholders, but also other external stake holders?
External scrutiny can add value to a business as it ensures that they have reliable information and therefore management can make informed decisions. Another benefit is that it instils discipline in management and encourages best practice for accounts staff, and perhaps even more so, it can be a huge deterrent against fraud.
For growing businesses, benefits may mean that there is an improved internal controls environment and again it encourages best practice amongst account staff.
There are a multitude of benefits to having an audit that sometimes get overlooked, take a look at our latest advisory video for more information on the real benefits having an audit can bring to everybody involved with the business, from management to external stakeholders and everybody in between.