Auditing is done for different purposes. But it generally refers to the audit of the financial records that are conducted in all companies. External auditing is mandatory for all companies and the report must be submitted when demanded. Most companies take the services of outside agencies to conduct the audit. Auditing is the inspection of all financial records maintained by the company. The inspection is done to ensure that all the records that are maintained by the company are in order and there are no mistakes. The auditing firm will also check whether the accounts are being maintained as per the laws of the land and accepted accounting standards. Auditing services in Singapore are being regularly used by companies to make sure that their accounting methods are right.
Why Does A Company Need Auditing Services In Singapore?
Auditing is necessary for every company because it is a process that makes sure that the company is following the right accounting procedures. Auditing also ensures that all the company’s records are properly kept. The auditing process is essential to assure the shareholders that the firm is moving in the right direction and all actions are taken to make the company give good results. Auditing assures the government that the financial activities of the company are as per the laws. It convinces the investors and creditors that the company is showing the correct financial position.
The company itself and the other persons involved with the company use the auditor’s report to make important decisions. When the company needs to bring in a new investor, it is the audited financial statements that the investor will rely on to know the company’s financial position. Banks will look at the audited report before they decide whether they can provide a loan to the company. For the company, the auditing process is good to bring out any mistakes that they may be made in the accounting process. It will also show if any documents are missing.
What Are The Benefits Of Auditing?
The owners of the company are the ones most benefited by auditing. The investors, shareholders, and owners can know whether the company is maintaining all the books in order. They can know whether what is being shown to them is accurate. The auditing will also reveal whether the figures in the books are accurate and true. This reassurance is much needed by the shareholders to know that the company is functioning as it is said to be. The owners will be happy to know that the different departments of the company are functioning satisfactorily.
The employees of a company can make mistakes while maintaining the books or accounts. This can be detected in auditing. This will make the employees more careful when they enter the figures. They will make sure that they enter the accounts properly and without any mistakes. While a mistake is committed unintentionally, there can be frauds that are done purposefully to misappropriate or divert funds. This can also be detected during an audit. It is very useful to ensure that there is no fraud committed in the company.
There are clear benefits in appointing an external auditor to check the books. An external auditor has no bias and he or she will inspect the books without any other motive. Their opinions on the maintenance of the books and accounting system will be impartial. They can also give very good suggestions and opinions about the functioning of the company. These opinions are highly valuable as they don’t have any other motive in giving these opinions except for the well-being of the company.
An audit will keep the employees of the company working properly. They will realize that any mistakes that they do will not go unnoticed. These mistakes will be found out during an audit and they will be questioned about it. This will keep the staff on guard and they will work with utmost concentration on the job. Accounting and bookkeeping are two jobs that require the maximum attention and auditing will put pressure on the accountants to perform their duties in the best manner.
Improved Credibility And Better Planning
When the audited reports are submitted the company improves its credibility. When an external auditor report is submitted this means that the company has been open for inspection and has nothing to hide from anyone. This will greatly impress financial institutions and investors. An audit report proves that the company is not doing any financial fraud and that whatever is shown is the actual position of the company. This credibility is greatly important when the company goes for additional investments.
A good external auditor can help in improving your internal processes greatly. Once they check all your records they can find out about your functioning and the controls that are in place. They can look at the deficiencies in your system and suggest improvements. This will help you put in better internal controls. You can also make your accounting practices better so that you get better information that you can use to make wise decisions. Your company can get valuable inputs from the auditors on improving your efficiency.
When an outsider looks at your financial records, he or she can get better inferences. When you look at the figures you may miss out on something. An external auditor will look at your revenue and expenses. The auditors can find out where you are spending more and where you need to reduce the expenses. They can also find out if you are losing revenues in some way. All these inputs can help you in planning in a better way. You can also improve your budgeting when you know the expense and revenue patterns.
There are many agencies in Singapore providing external auditing services. They provide statutory audits, rental audits, and charity audits. You must select an experienced auditor who can help you with good suggestions and recommendations to improve your business. You can use the services in the best way for a better business outcome. These services are available at affordable prices.