HomeHelping youAudit & complianceWhat is the importance of audit?

What is the importance of audit?

What is the importance of audit and why consider an external audit provider?

James Hadfield

James Hadfield – Audit Partner

Aside from the importance of the legal requirements for a statutory audit, the undertaking of the audit itself provides important and valuable insight. An audit determines whether an organisation is providing a true and fair view of its financial performance and position, which on its own is something any organisation wants to achieve.

Providing comfort over the accuracy of management accounts, or revealing systematic errors occurring throughout the year, a year end audit is critical to decision making for an organisation placing reliance on management information. The process through which an audit is undertaken challenges the robustness of the internal controls and processes an organisation has in place, giving an external perspective and valuable feedback.

The advantages of having an external audit

With more and more companies falling out the audit regime following the increase in the audit thresholds, what are the benefits of having a voluntary audit?

An external audit improves internal systems and controls

Auditors do not just focus on the numbers but will gain an understanding of the businesses overall systems and controls environment. This will enable them to identify deficiencies in the accounting systems or controls for which recommendations can be made, making your business more efficient and less prone to fraud or error.

An external audit provides credibility

Having your financial statements verified by an external auditor can lead to more credibility in the business marketplace than those that have not. Should you be seeking to raise finance or sell your business in the future, providing audited accounts gives security that your accounts are free from material error or malpractice, making you more likely to be successful in achieving your goals.

An external audit gives shareholders confidence

Many business are run by a small board of directors on behalf of the shareholders who can be remote and have little involvement in the day to day operations. An independent review of the financial statements can provide transparency to the shareholders that the company is being run within their best interests and can highlight any issues that have occurred which may not have been brought to their attention.


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More about Menzies audit and compliance services

As well as meeting your statutory reporting obligations, Menzies’ audit and compliance services are the proactive way to reduce risk and drive forward your business strategy. Our pragmatic, hands-on approach helps you improve your business performance – by challenging assumptions and resolving commercial issues that could be holding your business back.

Our audit and compliance team will help you to:

Add value to your business by using the audit as a basis to identify and resolve commercial issues and to improve your business processes.

– Use the understanding and insight gained from the audit as a basis for helping you develop strategies to drive your business forward.
Reduce risk and improve your organisational performance by challenging existing assumptions and practices.
Secure peace of mind from knowing your statutory obligations are met, accounts are true and potential problems have been identified early on.

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ESSENTIALS

  • “Menzies provided, audit, tax and company secretarial services to SFW. Their work was always to a  very high standard and we found them easy to work with. When we sold the business Menzies provided significant help during due diligence and completion activities. They were highly responsive, particularly, when we had last minute requests for assistance and were thoroughly professional. I have no hesitation in recommending them.”
    Steve Elliott – SFW Ltd Director

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    SFW Ltd, SFW Ltd August 17, 2016

  • “Lilou et Loic have worked with Menzies over the past year and we continue to be impressed with their knowledge, efficiency and the high calibre of support they provide. The Menzies team look after our year end accounts in a timely and efficient manner, and continue to provide proactive advice in many areas of our business, from keeping track of our product margins and fixed costs to providing us with beneficial forecasting advice. We are also liaising with other teams within Menzies, for example they are assisting us with crowdfunding options and have advised us on building a strong business plan.
     
    We look forward to continuing our relationship with Menzies and have no hesitation in recommending them.”

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    Lilou et Loic, Lilou et Loic August 17, 2016

  • “Menzies LLP have acted as our auditor and advisors for a number of years. The company has a holistic range of services to offer, from the compliance aspects of our business and consultancy services which are undertaken by specialist teams. The firm have recently undertaken a business valuation for a successful acquisition of an overseas subsidiary that our group acquired as it continues to grow and branches out into the overseas markets. We have found Menzies to be reliable, honest advisors and would not hesitate to recommend them.”

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    Contechs Holdings Limited, Contechs Holdings Limited August 17, 2016

  • “We have known Menzies for a very long time. The firm acts as our auditors and advisors for the company and our family’s own personal matters. The team fully understand our affairs and come up with pro-active solutions that are in our best interest and tax efficient for the business and family. We also utilise the services of Menzies Wealth Management so the teams work closely together to ensure our affairs dove tail in their advice. The team are trustworthy and reliable and we would not hesitate to recommend them for your personal or company affairs.”

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    Down Street Electrics Limited, Down Street Electrics Limited August 17, 2016

  • “We are a very long standing client of Menzies and they deal with all our financial requirements from day to day bookkeeping through to higher level advisory support.  They are always courteous, professional and considered – and relevant to our sector – providing us with solutions that are prompt and accurate and help us to run the business as efficiently as possible.  We would have no hesitation in recommending their services.”
    Takashi Kamimura – Mary Quant Limited

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    Mary Quant Limited, Mary Quant Limited August 17, 2016

  • “What really pleases me is that I’m now, for the first time, proud of my business, seeing it grow and spending less time at work! I’m learning how to have fun and relax again. My hard work is starting to pay off, thanks to Menzies”

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    FTI, FTI May 25, 2016