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One of the most important financial tasks that a company or business manager can be required to do is arrange an audit of the financial state of the business. There are a number of reasons why an independent audit of a business or organisation may be required. Statutory requirements are the most common reason that an audit may be requested, there could be irregularities in the accounts that need investigating, a project the company undertook with government funding needs to be validated or it could simply be that the stakeholders in the business are trying to improve their accounting processes. Whatever the reason, it is vital that the audit be conducted by an experienced and qualified professional. Since an audit is the process of comparing what should be present in a system with what is actually present, investigating the reason for the difference and reporting on it, a financial audit requires someone with financial knowledge. Typically a qualified accountant Brisbane who attained additional qualifications in auditing would perform a financial audit. An auditor generally has an audit objective when they first arrive at the business to start work. This objective may be set out in statutory documents, or it may be given in a directive by the management to look for and report on certain aspects of the accounting system. An auditor may also have a structured process for conducting the audit that maximises the volume of work they are able to perform in a given timeframe. This is important for the client as it may reduce the cost of the audit. Having the financial systems of the business examined by an independent auditor is like having a second pair of eyes look over the details of the financial transactions. It is in this process that questions may be asked of processes the business has been doing for years that have never been questioned before. This is often where efficiencies are identified or in the worst case scenario, irregularities are picked up that may need further investigation. The result can sometimes be evidence of embezzlement or fraud. In most cases however, the audit is quite routine and in a well managed organisation with sound business systems, reliable financial software and competent staff working under the direction of an internal accountant, there are no surprises. Rather the audit is simply verification that the systems in place are working, and the accompanying financial statements and audit report are written confirmation of the financial health of the business. Arranging an audit of the financial state of the business is an important part of the management role. It is generally conducted annually and the report presented at an annual general meeting. Regular independent audits keep the owners and stakeholders informed of the true state of the business and alert them to any issues or problems they may be unaware of that need attention. An accountant Brisbane they engage will ensure that any statutory audit requirements are met and the appropriate reports prepared and presented to management.
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