Driving Success with Consultants: Advising, Integrating and Moving Forward

The financial element is the most important factor in the success and the credibility of any business. Therefore, if you have started a small goods or services company, it is critical to ensure that you are audited regularly. Basically, an audit is a systematic and normally independent assessment of the financial statement in the business. In simple terms, an auditor will examine your company's accounts, vouchers, general documents and books.

The objective of the audit is to make certain that the records outlined are true and maintained properly according to the requirements of business laws. If you have never participated in an audit before, you might find the process stressful and overwhelming. Here is important basic information to help you understand auditing processes and how to limit the challenges.

Audit Planning

The audit planning stage is the preliminary phase of the entire process, so it will determine the success of the assessment. Basically, your auditor will determine the specific objectives and scope of the audit, depending on the nature and structure of your business. In addition, they will evaluate the time and the resources required for the completion of the process. You will be provided with an overview of these details during your official meeting with the auditor. If you are concerned about any of the details or the potential approach, you can present your uncertainties at this stage.

Internal Control Design Assessment

The auditor will need to understand the structure of your business with regard to financial activities and controls. Basically, your business will need to present the person in charge of different financial processes in the company. In a small business, this is the person who handles collection of cash, bank deposits and the review of the records. It is advisable to provide an employee as an audit liaison for the auditing professional. The individual can explain the cash flow procedures and provide sample documents to help the auditor understand your financial elements.

Testing Transactions

The auditor must examine your transactions and compare with the company financial records. Basically, the objective is to ensure that the activities and processes are reported accurately. Moreover, the auditor will ensure that the internal financial control design in the business is working efficiently. You should be able to present a population of your company transactions. The auditor will also require valid evidence of selected transactions for analysis. Finally, the auditing expert will present the results of the process and provide an analysis of risks, important observations and recommendations.

For the best results, work with an experienced accountant as you prepare for your company audit.