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Audit Benefits

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Why have an audit?

Apart from the statutory obligations and the assurance provided, the benefits of an audit are numerous. Audits can improve a company’s efficiency and profitability by helping the management better understand their own working and financial systems. The management, as well as shareholders, suppliers and financers, are also assured that the risks in their organisation are well-studied, and effective systems are in place to handle them.

Audits can also identify areas in an organisation’s financial structure that need improvement, and how to implement the proper changes and adjustments. Having an audit also lessens the risk and therefore the cost of capital.

An audit can uncover inaccuracies and discrepancies within an organisation’s records, which may be indications of weak financial organisation or even internal fraud, although fraud detection is not the main purpose of an audit.

The benefits of an audit:

  • Analyse and understand your company’s financial records.
  • Identify key areas for improvement in your company.
  • Assess risks, economy, efficiency and quality.
  • Evaluate new technology.
  • Uncover fraudulent or other illegal activities within your company.
  • Reinforce and strengthen internal control.

Auditors have a unique broad perspective of a company which they apply to deliver effective analyses and relevant information. Management can use this information to evaluate the company and implement measures necessary to meet their objectives.

More in this category: « Audit Requirements

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