Why You Should do an External Audit Regularly
Audits are performed to analyse existing processes and accounts within an organisation, in order to identify areas of improvement or anomalies within the existing system. This information can then be used to optimise, reform, or introduce processes that will benefit the health and stability of the company. While it may seem like an effort in futility, insofar that all the faults that may be identified have already affected the company in some way, it also presents an opportunity for the business to better itself in the future.
Here are a few reasons why your company should undergo an external audit on a regular basis:
- Helps Identify Pain Points
An auditing company can help you determine if there are weak links in your internal financial control. Regular external audits can ensure that the processes you have in place for reporting corporate financial data has the safety and quality controls to prevent mistaken reporting, or worse, fraud. By analysing the paper trail behind a financial report, the processes used to produce the document, and the roles and responsibilities of the individuals involved in the handling of financial data, an external audit can determine whether proper safeguards have been implemented to ensure the integrity and accuracy of the data.
- Strengthens Credibility
A company is able to build credibility through an external audit. Financial statements that are found accurate by audit firms in Abu Dhabi and Dubai appear more credible, which is beneficial if you are considering opening to investors. Additionally, audited financial statements indicate sound financial processes and systems. This helps improve the reputation of the company, especially during the nascent stages of its growth.
- Prevents Fraud
Regular external audits reduces the risk of fraud. Due to the intertwining nature of finance, there are often various people involved in sales invoicing, vendor billing, expense report development, and payroll accomplishment. This exposes internal processes to the dangers of fraud. With an external audit, a company has a third, objective set of eyes analysing the books and financial records as well as the processes of the entire finance department. If there are irregularities within the financial documents produced by the internal finance department, then a deeper, more intensive audit could yield more significant results.
- Strengthens Your Portfolio
Finally an external audit helps your case, when you are applying for credit, investment money, or a corporate loan. Banks are often more confident to lend money to companies that have good financial health, and this can only be proven through an extensive third party audit.
If you are looking for expert auditing companies who can analyse your financial processes and better your overall financial health, you can visit http://www.quickquote.ae/. Here you can find some of the most trusted and reliable auditing companies in the region today. Get a competitive quote for the services you need, from verified experts, and get the best value for your investment.