Accounting is an important element for a business, it is recording the financial transactions in every organisations. Without accounting, you cannot display the financial health of your business to your stakeholders. Today many companies think that auditing only to be done because of complying the rules and regulation. If the is no rules, audit seems unnecessary for them. However, many of the organisations out there operate under loss are mainly due to the improper evaluation of the financial data. Without monitoring by a proper auditing process, all of the error might be unseen and overlook.
So, you will need some independent and professionally qualified experts to verify and confirm your accounting process goes well in your organisation. Who are they? They are the external auditors. Here are few reasons why you might need to partner with an external auditor:
Prevent Fraud Happen
Audit serves important roles in fraud prevention. Maintaining rigorous audit system not only to detect various forms of fraud and accounting irregularities, but also assist in the design and modification of internal control systems. However It’s impossible to spot a fraudster just simply by looking, and they are often the ones who are least likely to cause suspicion. Thus, external auditors are the one to verify the financial statement without clouding their judgment by any personal relationship with the personnel/employee in the company. For them, all of the financial statement should put in even-handed inspection without any biases.
Create Credible Value to Company
If a company financial statement been evaluates by an external auditor, it will create higher credible values. As the examine process by the third party could be less biased. An external auditors don’t work directly to your company, the evaluations of the records should be neutral and more accurately. For a company aim to build up positive reputation, credibility of the business is one of the important elements. Internal audit sometimes might lead to biases due to their close relationships with the internal organisation. Thus, an external auditor’s approval of the audit report is always credible than an internal audit.
For example, to apply loan from banks and financial institutions required audit report. A qualified audit reports will help to make the loans approval process works easily because of it high credibility.
Outsourcing auditing expertise also help to notify your organisation in which area can be improve. Professional auditors will recommend you with the way to improve your company processes and procedure from current financial data. For example cash flow, reduce debt-service interest, depreciate assets, take more deductions or institute other capital management. While these recommendations not necessary to be implemented directly, knowing the financial problem and inefficiency system are one for the way for better planning in future improvement.
Verifying the existence financial position
Verification is an important part of the auditing process. Auditor will ensure the accuracy of the existence assets and liabilities value, legal ownership and possession of the assets in the organization. But, how can you identify those information is accurate and reliable? If Balance sheet valuation is improperly made, it does not show the fair and correctness information.
From here, assistance from independent professional is needed to verify your financial record and examine the actual financial position of the business.
If you are considering hiring an external professional to examine your records, AG Singapore are among the well-respected in audit services. Give us a call today, and let’s start a conversation. Or click the link below for more information https://ag-singapore.com/