If your organisation requires an audit for financial reporting compliance, preparing ahead of time is the best way of ensuring it goes smoothly for everyone involved. Brown Auditing Services provides auditing and regulatory risk assessment compliance services to organisations in a range of industries of all sizes in New South Wales. Below, we’ve prepared some tips to help make the auditing process stress-free and genuinely valuable.
Understanding the Purpose of a Financial Audit
A financial audit involves assessing the accuracy of an organisation’s financial information and how well they comply with relevant legislation. The auditing approach is typically tailored to each organisation. In many cases, the process will involve scrutinising financial processes and reporting procedures including budgeting, transactions, approvals, duties and other internal controls. With this in mind, your organisation can begin preparing for this audit process.
Gather All Relevant Documentation
Start by collecting necessary documents and records. Your auditor or accountant can clarify what they need ahead of time but it will include financial statements, contracts, and records of policies and procedures.
Ensure Accounts are Reconciled
Reconciling accounts before a financial audit is also important. This helps identify and resolve discrepancies and ensure the accuracy of financial statements. Include supporting documentation like receipts or other information to substantiate reconciliations, particularly if you needed to make estimations.
Review Policies, Procedures and Processes
Check that your policies and procedures are up-to-date with relevant standards and regulations. Identify any compliance or risk assessment areas that could potentially require improvement. Even if there are existing gaps, knowing where they are can help facilitate a more efficient audit process.
Identify Any Potential Issues
Even with careful effort and management from well-trained staff, financial and time pressures can result in errors and poor practices. Look for any potential issues, risks and areas of concern. Audits are part of the process to help fix issues and develop strategies to improve processes in future.
Find an Accountant
Find an accountant to help you prepare for the audit if there are any areas you’re unsure about. A qualified and experienced professional can assist with compliance efforts and make minor improvements where possible.
Designate a Key Contact
Designate some to act as a key contact within the organisation to coordinate with auditors and facilitate the audit process. This person is responsible for communicating with the audit team before, during, and after the audit to address any concerns or questions. This includes getting clarification around compliance, recommendations, legislation and any other relevant factors.
Involve the Right Staff Members
Involve relevant staff members in the audit process, including people responsible for financial reporting, compliance, risk assessment, management and policy making. This helps cover all relevant areas while making sure the right people receive advice from the audit team.
Practice Transparency
Be open and transparent with auditors throughout the process. Answer questions clearly and provide the right information to the best of your ability. A financial and compliance audit is an opportunity to improve your organisation’s practices which benefits you in the end.
Auditing and Regulatory Compliance Services in New South Wales
Simplify financial reporting compliance with tailored financial audits for your organisation in New South Wales. Book a no obligation consultation with Brown Auditing Services today by calling 0428 661 200 or contact us online.