Benefits of an Audit

The benefit of an audit is that it provides assurance that management has presented a “true and fair” view of a company’s financial performance and position. An audit underpins the trust and obligation of stewardship between those who manage a company and those who own it or otherwise have a need for a true and fair view: the stakeholders. Audits assist in identifying weaknesses in internal controls and lend creditability to the financial statements that are used by management, shareholders, potential investors and lenders in making decisions.

Benefits of an AuditThere are different types of audits that can be performed depending on the subject matter under consideration, for example:

  • Audit of financial statements
  • Audit of internal control over financial reporting
  • Compliance audit

For most organizations, publishing audited accounts once a year is something they must do by law. But most experts agree that the real value of the audit process goes far beyond ‘ticking a box’.”
True & Fair, An Objective Look at the Value of an Audit

Additional benefits of an audit:

  • Provides validity
  • Discovers errors
  • Limits legal and tax issues
  • Educates business owner

For more information, visit our section about audits or contact us online.

Photo Credit: adamr via FreeDigitalPhotos.net

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