How Auditing Enhances Credibility and Good Financial Management of a Company
The requirement for companies registered in Singapore to be audited if they meet a certain set criteria is not only beneficial to the government but to the individual company as well. Having your company’s financial statements audited by a reputable audit firm in Singapore is likely to be the cornerstone of confidence not only to the government or the financial institutions but to the stakeholders as well. Auditing of financial records provides the assurance that the management has presented to the relevant bodies the true and fair view of the company’s financial position and performance.
Due to the importance of auditing, queries get raised often about the audit methodology, the audit firm and the stakeholders involved. The filing of audited financial records therefore provides that useful background information on what the financial position of the company entails. Audit practice consists of assessment and evaluation of the financial records with the intention of expressing opinion on whether the records are accurate and well presented. When you engage an audit firm in Singapore for auditing purposes; their performance has the potential of impacting on the credibility of your audited financial records.
In order to enhance the degree of confidence in your financial statements; it’s advisable that you engage a reputable audit firm in Singapore that clearly understands your business and is capable of carrying out a rigorous audit process that potential investors, lenders, suppliers and all the stakeholders are likely to find to be satisfactory. Apart from engaging in active assessment and evaluation of the financial records; undertaking a rigorous audit enables those involved to identify insights on areas where the management can improve the business processes or control.
The audit firm in Singapore that’s engaged for the task should be able to effectively communicate control deficiencies to the management and those charged with the task of governance. Communicating such may help with adding value to the company and may also enhance the overall quality of the business processes. Here are some of the ways in which auditing enhances credibility and good financial management of a company;
Auditing takes into account Evolving Factors
The auditing environment is a key factor that influences the quality and credibility of the financial records. When engaging an auditing firm for the task of undertaking auditing of financial records; it’s vital that a company takes into consideration matters that impact on the auditing process and environment. The changing legal and economic environment can have significant implications on a company’s operations and financial reporting. Any changes that might arise such as changes in the business, economy, laws and regulations tend to increase the risks affecting a company and such require adequate response as well as disclosure in the financial statements. When you engage a reputable audit firm in Singapore such as Onestop CA Singapore; you can be assured of a financial reporting that takes into consideration the evolving factors that has the potential of impacting the company.
When it comes to auditing and financial reporting; it’s important to note that the audit firm in Singapore that’s engaged for the task should be able to express their opinion and also indicate that reasonable assurance has been obtained that the financial statements are accurate and free of any fraud or error and that’s presented in accordance to the relevant accounting standards.
Originally published by onestop-audit.com