It is possible that many companies have not had a statutory audit for a long time, if ever. If you are one of these companies, you should really consider whether a statutory audit would help your business.
Statutory audits give excellent and valuable feedback regarding the controls and processes of a company. If you intend on looking for financial investors for your business, then audited financial statements can really help in doing so as it enhances confidence in your business.
If you are considering a statutory audit, we have your complete guide. Keep reading…
1 Define your needs
2 Research the market
Before appointing the auditor, do your research. Meet a couple of auditors and discuss the requirements of your company. This is so that you can check out the auditors working and communication style.
3 Appoint the auditor
The directors usually appoint the first auditor; they are then appointed or reappointed at each AGM. The Companies Registration Office maintains a register of all those individuals and firms that are appropriately qualified to provide statutory audit services.
4 Preparing for the audit
To ensure that the audit process is as efficient and effective as possible, you should engage as early as possible with the auditor to agree a timeline and prepare the relevant records. The auditor may be able to assist you with these final preparations, although there are limits, due to independence rules, as to what the auditor can do.
The auditor will generally arrange a planning meeting. An engagement letter will issue, which sets out the respective responsibilities of the auditor and the director. This should be reviewed carefully. Ask the auditor to explain any terminology that you are not familiar with.
5 Final report
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