Auditing Help in NSW for Foreign-Owned Companies

Certain foreign-owned companies must have their financial reports audited by a registered external auditor if, for example, you are considered a large company, need to apply for a loan or obtain a government grant. Even if a company audit isn’t legally required for your business, there is a range of benefits to getting one.

At Brown Auditing Services, we provide audit services to companies in New South Wales, helping them access valuable insights into their financial performance and how they can plan for the future. Here, we look at some of the benefits of a company audit.

Improved Decision Making

A business audit ensures financial statements are accurate and up to date, leading to more informed decision-making. Having your finances and processes reviewed by an impartial, expert third party can highlight issues that may otherwise have gone unnoticed. Audit services can look into:

● Communication processes between managers
● Risk assessments
● Internal control reviews
● Employee reviews
● Segregation of duty issues
● Fraud detection processes
● Potential compliance issues

To audit a business, an external auditor will look at cash flows, creditor risk, market risk, and the controls your private company has in place to manage those risks. Recommendations can be made to identify and mitigate significant threats, improving overall corporate governance.

Growing or Selling Your Business

A business audit can reduce the risk of business failure by providing greater visibility and building an understanding of how to develop practices that allow your private company to better seize opportunities for growth while minimising risks. Improving internal activities and controls adds value to your business and helps to provide a competitive edge.

It’s a good idea to regularly hire someone who knows how to audit a business, especially if you’re planning to sell your business soon or at a later stage. Doing so allows potential buyers to be confident in your financial data. This is similarly important if you want to attract investors or plan on listing on a stock exchange at some point. A business that has passed one or several independent audits is a less risky proposition for investors.

When is a Company Audit Required?

If a company becomes a large proprietorship, it must be audited each year according to the Corporations Act. The Australian Securities and Investments Commission (ASIC) considers a proprietary company ‘large’ if