Our audit approach is a risk based one. We follow an audit plan that is tailored to the needs of our client’s business and focus on key drivers and areas which are most critical to its risk profile. This allows us to understand your business and operations (internal controls and information systems), identify areas of risk (business, financial, compliance, reporting), and we then focus on those key risk areas of your business.
Where we identify any threats or weaknesses’ we work with our clients to strengthen these or minimise. We then conclude by providing details of the sufficiency and appropriateness of our testing, provide to the governance/management our report on our observations and recommendations then our Audit Opinion.
We pride ourselves on being cost effective and work with our clients to ensure they are getting value from us.
The majority of entities that obtain an independent audit of their annual financial statements are audited because they have to be.
Due to their type, and/or nature of operations, such as raising money from the general public, legislation or regulation specifies they must be audited. Other compulsions include a term in the entity’s Constitution or rules, or as a specific requirement of their funders. In all these cases the entity has no choice in the matter.
However, there are other very valid reasons that entities should consider an audit even if they are not compelled to.
• A decision to adopt governance best practice.
• Management confidence.
• Investor confidence.
• Loan funder confidence.
• Building a financial history for future sale or expansion requiring funding.
While very valuable due to the above reasons, an independent audit of annual financial statements by a suitably qualified statutory auditor is not a silver bullet though. Hence it is important to understand what is and isn’t involved.
It is primarily designed to allow the auditor to form an opinion on the truth and fairness of the annual financial statements. To get to this output this involves the auditor understanding the financial recording and reporting systems, assessing risks of misreporting, and then testing a sample of transactions, controls and balances to a certain level of materiality to be able to form their opinion.
However, this means that they do not test every transaction. Nor will they necessarily query the nature of expenditure if it appears to have been appropriately approved by management or the entity’s governing body in accordance with their constitution, systems and processes.