How can you Conduct an Audit Successfully? (Part 2)
Auditing Services are a way to find out if there is any discrepancy or any occurrence of fraud in the company. Once the business is set up, the management of the company needs to look into maintaining the business in its best shape. If the financial condition of the business is perfect, the results provided by the business will be good.
As mentioned in part one of the How can you Conduct an Audit Successfully, we had a talk about the various tips and techniques which need to be followed by in order to conduct an Audit. For part two of the series, we will be talking about the various benefits of Audit and how it can be used for the benefit of the business.
Benefits of Audit Services
A Financial Audit can be conducted even when it is required by a stakeholder or a potential investor. It is asked for by a potential investor to correctly understand the financial health of the company and make the decision of investing accordingly.
Some of the benefits of a Financial Audit of a company is as follows:
1.Helps in Compliance
Maintaining compliance is one of the biggest advantages of getting a business Audited. In today’s world, compliance with the rules and regulations of jurisdiction is very important. If the rules of compliance are not followed properly, the company may have to face fines and may even be disbanded. When an audit of a company is conducted, all the financial documents prepared for the company are examined, which helps in finding out if the rules of compliance are being followed to the letter.
2.Find, Prevent and Mitigate Fraud
A financial audit will help to find out the bottleneck in the working s of the business and, in turn, will assist in finding any fraudulent activity being conducted in the name of the business activity. Once all the financial books of accounts are examined, and the fraud is caught, the audit will also provide the means to see that the type of fraud never happens in the business.
3.Increases the investors’ confidence and the Credibility of the Company
In an audit, all the books of accounts of the business are thoroughly examined. This means that the auditor will go through and will collate data from all the books of accounts of the business and will also make sure that all the necessary regulations are followed. This will not only increase the confidence of the potential investors but will also raise the credibility of the business.
4.Assists in Planning and Budgeting
In order to prepare a future plan for the business, the auditor and the management should know about all the activities which are being conducted on the business premises. Only after understanding what the business is going through, what are the requirements of the company, and what are the present trends in the market, a proper business strategy for the future can be prepared.
5.Helps business to prepare other reports
In order to prepare the audit, report the management must first prepare the necessary books of accounts, which include The profit and Loss Account, Balance Sheet, and Income Statement. The deep examination of the three financial statements is a very big part of the preparation of the audit report. The Audit Report will be further used during the time for filing for taxes.
These are some of the benefits of conducting a Financial Audit of a Company. If, after seeing the various benefits of conducting an Audit have made you conduct an Audit of our audit in the United Arab Emirates, then you can look into the service provided by JAXA Chartered Accountants.
The experts at JAXA will take into consideration all the requirements and needs of the company and accordingly arrive at a solution. JAXA is an ISO certified Accounting and Auditing Firm and is dedicated to providing the best possible services to its clients.
For any more information about the services provided by JAXA Chartered Accountants or to ask any query, feel free to Contact Us. We will be happy to answer all your queries.
