Many organisations must be audited by a certified external auditor each year to comply with both NSW state and federal legislation. This includes publicly-traded companies and private companies that meet certain criteria.

Brown Auditing Services tailor our audit reporting approach and advice to each client in New South Wales. The appropriate approach often varies depending on the unique circumstances and business needs. Below, we look at auditing requirements in NSW and some of the processes involved in a regulatory compliance audit.

Overview of Auditing Requirements

All publicly-traded companies must undertake an external audit each year, regardless of industry, size and market performance. This ensures investors have accurate financial information to make investment decisions. Private companies must conduct annual external audits if they meet 2 out of 3 following criteria:

  • Consolidated gross operating revenue of over $50 million per year
  • Consolidated gross assets of over $25 million
  • 100 or more employees

Non-profits registered with the Australian Charities and Not-for-profits Commission (ACNC) with annual revenue over $500,000 must supply financial statements for review while those with revenue over $3 million must be audited each year. Organisations applying for government grants or loans may also need to be audited to verify their eligibility.

Key Components of Audits

Financial audits are designed to verify the accuracy of an organisation’s financial information and how well their financial reporting processes comply with accounting and auditing standards. The process includes:

  • Planning and designing – The scope of audit procedures are designed depending on the type and size of the organisation as well as your policies, processes, accounting systems and internal control procedures. Auditors typically request some documentation to help plan the audit strategy, criteria and milestones.
  • Interim phase – Auditors begin to assess and scrutinise financial reports, account statements, budgets and the internal control framework for any compliance risks, inconsistencies and errors.
  • Testing controls and transactions – Checking and verifying financial reporting and performing tests to determine the effectiveness of internal control, company policy and procedures. The aim is to spot any weaknesses or procedures that are prone to error.
  • Financial audit report – Auditors complete the process by providing their opinion regarding the quality of financial reporting and internal control structures of the organisation. An unqualified financial audit report indicates no issues while a qualified report indicates misstatements, potential noncompliance issues or insufficient evidence.

Tips for Audit Preparation

Organisations preparing for an upcoming audit can help streamline the process with the right preparation. This includes gathering necessary documentation, maintaining organised financial records, reconciling accounts and conducting internal reviews to identify potential areas of improvement.

Partnering with Brown Auditing Services

With over 15 years of experience, the team at Brown Auditing Services can take the stress out of accounting and auditing with tailored advice and guidance throughout the audit process. We design our audit procedures to suit your unique circumstances so we can effectively improve your financial reporting processes and ensure compliance.

Contact Us for Regulatory Compliance Audit Services in NSW

Brown Auditing Services provides financial auditing services to a range of clients, from private companies to sporting clubs, trusts and not-for-profits across New South Wales. Book a no obligation consultation today by calling 0428 661 200 or contact us online.