Four reasons an audit is valuable for your business

Audit.jpg.jpg

Your annual audit should be seen as more than just a box-ticking exercise. It is a process that can add value to your business in many ways.

What is an audit and why is it needed?

An audit is the independent examination of an organisation’s financial records, which includes a review of risk management procedures, internal controls and compliance with legal and regulatory requirements. The auditor will produce a report for inclusion within the financial statements and may also report to the directors with recommendations for improvement.

The goal of an audit is to provide assurance that your company is managing its risks effectively and that its financial statements are accurate. Mandatory audits are required by law while voluntary audits are conducted at the discretion of a company.

How valuable is an audit

An audit can be a powerful tool, providing the following benefits for your business:

Identify opportunities for improvement and growth              

The information an audit provides can be vital in helping make business decisions. Recommendations in the auditor’s management letter can be used as a key aspect of your board’s quarterly strategic planning.

These recommendations can cover aspects of improving internal controls to reduce the risk of fraud and errors and may identify opportunities for improvement to help your business operate more efficiently.

Through their analysis, an auditor can highlight where there are opportunities to reduce costs or increase profitability. Comprehensive management information and an acute understanding of your business’ key profitability drivers can be used to actively manage and drive improved business performance, as well as being really useful during the sale process.

An audit team with their ‘radar’ attuned to the right things will also bring to the attention of management other matters that can affect risk and value – including an absence of key commercial contracts, over-reliance on key members of staff/customers/suppliers and gaps in the management team. It is the role of an adviser to challenge management’s assumptions and alert them to best practices. They will also highlight new developments in legislation, allowing businesses to plan for upcoming changes in advance.

Increase transparency and credibility

An audit helps to increase transparency, which provides assurance to stakeholders and potential investors that your financial statements are accurate and reliable. Lenders or investors may want your financial statements audited before they will provide funding or invest as they need to be confident your business is financially sound before taking on any risk.

Meanwhile, ensuring that your business is properly prepared for a due diligence process, not only greatly reduces the stress of a business sale but also delivers enhanced comfort and confidence to buyers, reducing the perception of risk.

Protect business reputation

Similarly, an audit will help improve your overall risk management and governance policies, which can make your business more resilient to unexpected events and protect its reputation.

A robust approach to corporate governance reduces the perception of risk to a prospective buyer, while simultaneously assuring the buyer that any ‘post-deal’ transition will be as seamless as possible, and an excellent compliance record and attitude to compliance, particularly with regard to HM Revenue & Customs, will always reduce the perceived risk to investors and acquirers.

Better communication

Another added benefit, and one benefit that is often overlooked, is improved communication, both in terms of frequency and the quality of interaction with your advisers. With regular meetings, your adviser will have a greater understanding of your long-term ambitions, meaning to audit process can be aligned with these goals.

To find out how an audit could benefit and add value to your business, please contact us for more information.

Enjoyed this? Read more from Pierce CA Ltd

Latest news

1

PM+M welcomes ten new apprentices for 2025 intake Lucy Field, Kate Walsh, Ellie Fisher, Zainab Aswat, Reece Jones, Aisha Bibi Patel, Finley Vila, Uzair Zariwala, Richard Prest, and Charlie Harrison

PM+M welcomes ten new apprentices for 2025 intake

11 Sep 2025

2

ROCCIA strengthens commercial division with senior appointment Andrew Grove

ROCCIA strengthens commercial division with senior appointment

11 Sep 2025

3

Final call for investors: Rossendale community solar project must hit target by November Gary McEwan managing director of Interfloor

Final call for investors: Rossendale community solar project must hit target by November

10 Sep 2025

4

Lancashire Combined County Authority unveil plan to Get Lancashire Working Lancashire Combined Authority

Lancashire Combined County Authority unveil plan to Get Lancashire Working

10 Sep 2025

5

Lockheed Martin Skunk Works and BAE Systems’ FalconWorks announce strategic collaboration Collaboration between BAE Systems FalconWorks and Lockheed Martin Skunk Works

Lockheed Martin Skunk Works and BAE Systems’ FalconWorks announce strategic collaboration

09 Sep 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Sub36 Networking - Follow the signs
Sub36 Deaf Village Social1200
Networking
17 Sep 2025

Sub36 Networking - Follow the signs

The Deaf Village, Blackburn, BB2 5EN

10:00 - 12:00

LBV124 September/October Launch Event
MBP Arc Cinema Preston Opening 205
Networking
18 Sep 2025

LBV124 September/October Launch Event

The Arc Cinema, Preston, PR1 2BL

08:30 - 10:30

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Longridge Soap Box Derby
Screenshot 2025-06-10 090035.png.png
LBV Hub Fundraisers
14 Sep 2025 - 14 Sep 2025

Longridge Soap Box Derby

Berry Lane, Longridge, PR3 3WH

10:00 - 16:30

Preston Tech Connection - The Ultimate Tech Quiz!
Preston Tech Connection Sept 25.png.png
LBV Hub Networking
16 Sep 2025 - 16 Sep 2025

Preston Tech Connection - The Ultimate Tech Quiz!

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:00

The Business Network Central & East Lancashire
LBV Hub Networking
17 Sep 2025 - 17 Sep 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation
Chorley Council breakfast event new
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation

Worden Hall, Leyland, PR25 3DH

08:00 - 11:00

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

The Marketing Meetup IRL: Lancashire - September
TMM Lancashire
LBV Hub Networking
25 Sep 2025 - 25 Sep 2025

The Marketing Meetup IRL: Lancashire - September

Chorley, PR7 2SL

18:00 - 20:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV 123 Online Graphic
Subscribe now

Weekly news bulletin