Audits aren't just done by the IRS. Occasionally, a business may request a third-party audit on itself. An audit is a way for a business to make sure that its books are accurate, in addition to discovering any critical issues such as fraud. Here are some of the reasons you might want to contact a certified public accounting firm to conduct an audit on your own business.
Make Sure Your Internal Controls Are Accurate
CPAs look at the numbers that are being entered into your books and verify them. If any mistakes have been made, they track them down and figure out why. As an example, it could be that data is being manually entered in from bank statements into your accounting program, and that numbers are frequently being transposed. The CPA may be able to suggest a way to automate the process or otherwise improve your accuracy.
An internal audit may be a good idea before getting a bank loan or procuring other types of investment, as an audit will catch any problems and inconsistencies before they can be noticed by others.
Catch Any Intentional Discrepancies
Fraud can happen to any business, regardless of how trustworthy its employees seem. Fraud is difficult to detect for a business if no one outside of the business is checking the numbers. A CPA will be able to look at the numbers from an unbiased point of view, finding any major discrepancies and reporting upon them. These can be issues such as cash deposits not matching up with the amount that was collected, or checks being cashed that are going directly to employees.
Improve Upon Business Processes
If you haven't updated your accounting and business processes for some time, an audit can help you do so. CPAs are kept current on modern accounting techniques, and will be able to advise you on business processes that can improve your company's operational efficiency. By automating your books, simplifying your workflow, and upgrading your software, a CPA will be able to reduce your overall accounting and administrative time while also improving accuracy.
After an audit has been completed, a CPA firm will leave you with suggestions for improving your next audit. These suggestions include actionable tips that you can use immediately to improve upon your business processes. CPAs can do everything from a cursory examination to an in-depth audit; you can contact a company like Vlasac John M & Co to learn more.