People sometimes ask, is it necessary to obtain audit report on financial statements? This question is relevant for those companies/businesses who do not fall under the ambit of any legal restriction of getting audited financial statements because large scale entities are legally bound to get their financial statements audited after closing of each financial year. Either for small, medium or large corporate group, attention should be endowed that obtaining an audit report from a reputable auditing firm dispense countless benefits which are a) assurance of more accuracy and quality in financial statements b) management can ascertain different weaknesses in their part highlighted by auditors c) management can formulate strategy about how they can improve their internal control policy d) how to revamp reporting system e) evaluation of reliability of record generated from accounting software’s etc. All these said merits are of internal nature. However, one of the most considerable element is that companies can arrange massive funds from banks if their SMSF auditors in Melbourne are audited by recognised auditing firms. Moreover, major stakeholders let’s say (shareholders) can enhance their understanding by considering opinion of independent auditors. It means it can be argued that audit of financial statements is an advocacy of a strategic approach which lead an entity towards attainment of corporate objectives and corporate success.
Especially for medium size and small scale businesses, it is sometimes argued that reputable auditors usually change too much on account of their professional services. Then, is it worthwhile to recruit external auditors for medium or small scale business as such businesses usually face cash flow dilemmas. Attention should be given here that auditor firms always charge on the basis of quantum of work. Like, audit remuneration for large scale corporate group or a multinational would be materially different from small scale or medium sized entity. Moreover, hiring qualified auditors even for such businesses is a value addition because as mentioned above, this choice can drastically change efficiency of a business. Business analysts usually say, “If you do not have a money trail of your business, you own a considerable threat of survival”. Go here for financial statement auditors.
Another foremost reason due to which even those entities who are not legally bound to engage external auditors always get their financials audited each year is that it is a best mechanism of detecting errors and fraudulent activities incurred in preparation of financial statements. Further, in Australia, also note that because of the reason that number of auditing firms are competing with each other, one can recruit such experts in affordable cost packages so that audit can be conducted by catering for cost efficiency. So, conclusion can be drawn that every stable business can get audited financial statements in Australia without hindering its liquidity and cash flow management.
