WHY YOU SHOULD AUDIT YOUR FINANCIAL STATEMENTS ACCOUNT
WHY SHOULD I HAVE TO AUDIT MY FINANCIAL STATEMENTS ACCOUNT?
It is essential for every business to keep accurate financial accounts. You can find here some vital points for audit of financial statement (account).
WHAT IS A FINANCIAL STATEMENT AUDIT?
A financial statement audit is an engagement performed by an independent auditor or accountant to provide assurance that an entity’s financial statements are reported in accordance with accounting principles and form a report on accuracy and fairness of the statements. So it can also be maintained internally.
Compelling Reasons to perform an AUDIT for your Financial Statement Account
There are several compelling motives for which one should include this task on their to-do list.
To Certify Accountability
The more a business nurture, the more imperative it is to keep track of who is accountable for what. This is especially true when shareholders are on-board and accountability is a demand. Managers need to ensure they are keeping up-to-date with providing accurate reports as far as they can, but there is no substitute for an independent audit of financial statements to double-check and validate performance.
To Deliver Reliability
The tax office, financial institutions, and management can all advantage from audited financial statement account. With an independent financial audit, tax officials can rely on the accuracy of the information you provide for their own calculations and judgments.
It Propose Pledge
Though no audit can provide 100% accuracy and assurance, it can certainly go a long way. A level of reasonable pledge or assurance can categorically be obtained from a well-carried out audit, potentially saving any later recalculations or corrections of misstatements. This offers a level of peace of mind that few other checks or procedures can provide.
Delivers a Comprehensive Accounts Report
A small but very significant detail is that an audit will provide a comprehensive report on the shape your business is in. The valuable thing to appreciate here is that it’s often what doesn’t get reported that makes all the difference. Having comprehensive account records means that whatever happens, you’ll have complete and up-to-date information when you need it.
Stretches the Opportunity to get Comments and Advices
When it comes to protecting your business, an ounce of prevention is worth a pound of cure. If you’re not aware of any potential issues or conspicuous gaps, you have no power to fix them. This is the key to an audit’s worth and could even make the vital difference between the success and failure of your business.
To Enhance Recognition Value for Credit
Regular or continuous auditing of financial statements is an attractive part of any business package for lenders, creditors, and investors. It can help to stabilize the credit rating of a business, provide guarantee to would-be investors, and even keep the bank onside in the event you need to take out an unexpected loan.
If you’re still looking for reasons for auditing financial statements, think of it as necessary housekeeping. Also, your products and services look after your customers, your profits look after your business, and your auditing looks after the creditors, lenders, and financial angels who look after you. So, at the end of the day, it comes down to respecting what you have. This is the key to seeing the value of your business grow and remains floating.
IF YOU NEED ADVICE ON FINANCIAL STATEMENT AUDITS, GET IN TOUCH WITH POFESSIONALS OF KLAPAKISTAN TODAY.
Also get checklist of required documents for audit of financial statements here.
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