The Value of Audit Services
Determining the value of audit is a straightforward and non-precarious activity. As accounting professionals, we, of course, refer to audit from a financial audit standpoint, but there are many types of audits including compliance audit, tax audits, and operational audits, to name a few. A financial audit is the analysis of the fairness of information in an organization’s financial statements and is the most common type of audit conducted. Audit firms conduct these types of audit independent of the business entity. When it comes to auditing private companies, regulators have numerous audit requirements that also change over time. The main value of having a financial audit can be surmised by subtracting the cost of the audit from value-added items such as ensuring accountability and reliability, increasing credit rating and value, and gaining a clear picture of the overall health of the business.
Ensure Accountability and Reliability
As a business grows larger over time, it can become difficult to keep track of whom is accountable for all the different aspects of work. An audit of financial statements can provide a valuable cross-check of employee performance, arming managers with the updated reports and analysis that stakeholders crave. Additionally, and perhaps most importantly, audits provide institutions an assurance of financial statement reliability to banks, managers, and tax officials.
Increase Credit Rating and Value
Perhaps one of the biggest net gains that derive from an audit is when an audit causes a company’s credit rating and/or overall value to increase. While an increase in valuation from a single audit is rare, with continuous auditing of financial statements, creditors, lenders, and investors become more interested in doing business with your company. Having a stable credit rating can provide assurance to investors and will increase the likelihood of the business is eligible to take out a bank loan when needed.
Provide Information on the Overall Health of the Business
Knowing the overall health of your business is a significant value-added benefit of audits. By knowing the constant state of your business, you empower your owners with comprehensive and up-to-date information that can be used to improve your company. Audits can provide potential financial or even legal issues that must be attended to. This business knowledge can be the difference between running a thriving business or closing the company.
Value of Audit Services
CPAs are best positioned to do an unbiased and objective audit of a private company’s financial records. Aside from the aforementioned benefits, auditing should be viewed as a necessary housekeeping measure that helps ensure the survival of your organization. Whether you are required by regulations to have an audit completed with your annual tax returns or simplify want to ensure accountability, gain a better understanding of your businesses’ health, or enhance your company’s value, The Baird Audit Group has the experience and expertise to handle your audit needs. Contact us today at 706-855-9500 or online HERE to find out more about our services or to schedule an audit.