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What is the Value of an Audit?


Christine Mills on October 12, 2011 in Advice for Business Owners

I imagine many of you have wondered about the genuine value of an audit. Traditionally, an audit not only costs more than a review engagement, but it also consumes more of your staff’s time.

As assurance service providers, we often struggle to communicate the value that you receive for the additional cost and effort.

To better understand the value of an audit, consider these three questions:

  1. As an owner/manager, would you appreciate knowing that your accounting team (who safeguard your assets) is performing its job properly?
  2. Do you need to foster financial partnerships with others and, therefore, see the need to present your company in the best possible light?
  3. Do you want your company to be portrayed as a leader in your industry by being credible and professional, thereby increasing your ability to attract new customers and the best employees?

If you answer, “yes” to these questions, then you would definitely benefit from the value an audit can provide.

As an owner/manager, your time is valuable, but you can’t be involved in every aspect of your company’s operations. When you have entrusted your assets to someone else, the added assurance of an annual audit will help you feel comfortable with that decision; you may even sleep a little better at night.

Additionally, an audited set of financial statements can be an asset to your company. Many of our clients provide their statements to potential customers who, in turn, need to ensure they are dealing with a credible organization. An audit can help you build your brand and reputation within your industry, allowing you to attract and retain better employees. Plus, everyone wants to work with a winner!