An audit confirms an organisation’s claims about its financial position.
A trusted auditor’s opinion and verification of how well a company operates provides shareholders and potential investors a higher level of assurance of the quality of their (potential) investment. Furthermore, the audit process gives the owners of the business assurance of their internal controls.
An independent audit from a registered company auditor is a vital tool in determining the value of shares or the value of the organisation. The findings from a quality audit report would be useful in due diligence processes in preparation for the sale of a business, mergers, acquisitions or entrance of a new managing director/partner.
Findings from an independent auditor can provide assurance to financial controllers that their processes and calculations are true and accurate and assist them to make adjustments based on the recommendations in the audit report.
Financial institutions such as banks, credit unions and some insurance providers often request verification of financial statements by an independent party to satisfy loan requirements or bank lending covenants. An independent auditor provides the assurance banks require for an organisation to get access to the finance product(s) they need.
Audits also satisfy requirements of the legal and industry regulator the Australian Securities & Investments Commission (ASIC).