Preparations For Statutory Audit, Auditing Companies

The activity of any company, regardless of its specifics, depends on many factors, among which a prominent place is occupied by factors of control over these activities. Cooperation with controlling authorities in many respects defines further development of the company, at the same time it is an integral part of enterprise promotion. A successful audit depends not only on the relationship with the inspectors but also on preliminary preparation on the part of the company. We suggest that you learn a little more about the secrets of a successful audit with a virtual data room review.

Why do you need a statutory audit?

We have already mentioned that various audits are necessary for each company. They give an opportunity to determine the problematic places in the promotion strategy, as well as a realistic assessment of the company’s financial abilities to this promotion and make up the value of the enterprise for the modern market. In this case, an audit is also a form of verification of compliance with the company’s actions and openness to the norms of law, in particular – in matters of financial activity.

In addition, the readiness to various audits indicates the openness of the company to cooperation – not only with third parties or regulatory bodies but also with clients. This creates a positive image of the company and contributes to strengthening the company’s position in the market. “Clean” financial reporting is also essential for building trusting relationships with business partners and investors.

How to prepare for a statutory audit?

To make the audit as easy as possible and without unnecessary headaches, it is recommended to use our simple but effective tips:

  1. Divide the audit process into several stages. It is worth remembering that the verification of financial documents is a lengthy process and does not require a rush. There are usually several major steps in the process, from the appointment of an auditor to the preparation of the final accounts. These stages are worth taking into account when preparing a company for an audit.

  2. Determine the purpose of the audit. Mandatory audits come in two types – scheduled and unscheduled. In the first case, they always take place around the same time and have a clear purpose. The second type of audit is scheduled for several reasons, but the main one is that something has gone wrong in the company’s work. Try to determine the purpose of the audit yourself and take that into account in your preparations.

  3. Establish contact with the auditor. This will be the main participant in the audit, whose performance will largely determine the outcome of the audit. Try to establish a normal working relationship with the auditor, avoid personalities and try to provide all necessary assistance and explanations on matters of interest.

  4. Prepare documentation for the audit in advance. Don’t be reminded that financial records must be kept in accordance with generally accepted norms and standards. It is also recommended to keep it in a secure place, where only the head of the company, the responsible employees for its maintenance, and the auditor can have access. That way you will save time on finding the necessary documents and their further exchange.

  5. Hire an outside consultant. In some cases, you may need the help of an outside professional to prepare for an audit. Don’t be put off by the possibility of getting help from them, as they will do a little pre-audit to help you better prepare for the upcoming audit.

The main secret to a successful audit is for employees to perform their duties responsibly and keep records. Everything else can be tweaked!