Benefits of Auditing
Auditing is a process whereby you hire a professional to evaluate all your financial records to ensure they are intact. It helps you understand and analyze your financial records with ease and also identify key areas that need improvement for desired growth. Auditing assess economy, risks, quality and efficiency as well. Here are the top reasons why you need to consider auditing:
1. Satisfaction of Owner
Auditing ensures the owner is satisfied about the operations of the business as well as working of its several departments.
2. Detects and Prevents Errors
Whether the errors were committed deliberately or innocently, the auditing process discovers all the errors and prevents future occurrences. The workers will not commit any financial error or fraud because the accounts are audited regularly and therefore they will definitely fear being detected.
3. Independent Opinion
It is very useful as it helps you obtain an independent opinion from the auditor concerning your business. If your accounts are audited by independent auditors, it is a guarantee that the report will be fair and true in all respects.
4. Prevention and Detection of Frauds
Just like frauds, errors are also discovered by auditing which prevents future possibility. In simple terms, auditing is the best way to monitor your financial records against interference.
5. Moral Check
The auditing process will establish thorough check that ensures the business runs smoothly and the staff will not commit irregularity. The staff will fear committing any regularity since they know the accounts are examined regularly. Thus auditing prevents any irregularity and therefore the staff will be responsible and more active.
Auditing has its disadvantages as well; it does not in any way counter planned fraud. The management can manipulate their accounts to conceal their ineptitudes. On the other hand, audited accounts can not indicate fair and true view since almost all certificates taken from the management may not present true information.