|
The Benefits of Audit
“Beware of little expenses. Small leaks will sink great ships” – Benjamin Franklin
Auditing is a process whereby a qualified accountant with strong accounting skills, statutory knowledge and a broad understanding of business and finance examines a company’s statement of accounts to determine whether the recording has been done honestly and accurately, and in accordance with statutory requirements.
The auditor does this by conducting an independent review of the declared surplus, income, capital-stock accounts, assets and liabilities.
Although Private Limited companies with a turnover of less than 5 million are no longer required to conform to statutory audit reporting, an annual audit has clear benefits:
| • |
Insightful information for shareholders, Directors and managers in terms of company strengths and weaknesses. |
| • |
An objective 3rd party review of the company’s system of reporting to prevent any unforeseen problems and to suggest improvements for future practice. |
| • |
A solid and unbiased report for commercial and investment bankers for business expansion. |
|
|
