What makes a good audit?

In business, the term ‘accounting audit’ carries a lot of weight. It’s a crucial process that measures financial transparency, accuracy and your firm’s compliance with standard accounting procedures. Arranging one can therefore feel daunting, especially if this is your first audit. But don’t worry – here’s what makes an audit work well and what a competent auditor will do.

What makes a good audit?

1. Thorough understanding and planning

A good audit will always begin with your auditor learning about your business. If they don’t do that (learning about your industry, operations, risks and accounting methods) they’ll never be able to plan their audit – and auditors love an intricate plan!

2. Adherence to accounting standards and financial regulations

The main goal of an audit is to make sure a business is adhering to established accounting standards and regulations, such as FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. So, this is where an auditor will begin.

The point here is not to interrogate you and put you under a magnifying glass. It’s more about checking you’re doing your accounting properly, and offering you guidance where improvements could be made.

3. Independent and objective approach

To review your accounts in a way that’s useful to you, auditors will employ an independent and objective approach. Without such an approach, unbiased and impartial advice will be impossible.

Hiring an impartial auditor is especially important if you need to convince key stakeholders, such as investors, that you’re committed to accurate accounting, as it is a far more transparent approach.

4. Attention to detail and analytical skills

A good accounting audit relies on the auditor’s attention to detail and analytical skills for rather obvious reasons – scrutinising financial records, transactions, and statements requires a keen eye for discrepancies or irregularities that might signal potential risks or errors. Thorough analysis also aids in identifying areas for improvement and risk mitigation strategies.

5. Effective communication and transparency

Clear and transparent communication between auditors and your business is essential: what’s the point of your accounts being examined if your auditor can’t effectively communicate what they have discovered? The provision of clear information and meeting deadlines – from both sides – can ensure the audit is conducted efficiently and effectively.

6. Positive relationship between the auditor and client

The best audit experience occurs when the auditor and the client work well together. Although the auditor is independent, they are as keen as you to reach a successful outcome to the audit process and to add value to your business.

Looking for an auditor?

As experienced auditors, we don’t just adhere to a checklist while we serve our clients. Instead, we use our expertise and experience to truly empower businesses. We do that by ensuring that our clients receive not just a thorough examination of their financial records, but a comprehensive blueprint for success.

Our track record speaks for itself, showcasing our ability to navigate complexities with finesse, provide astute insights, and forge lasting partnerships built on trust.

Choose us for your accounting audit and get in touch with us today.

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