What are my Auditing Compliance Requirements?

While businesses, companies, clubs and organisations of all sizes must maintain financial records for tax purposes, when it comes to financial auditing it can be difficult to know what your compliance requirements are. The rules vary depending on your organisation’s industry and scope of activities.

At Brown Auditing Services, we help a wide variety of organisations in New South Wales keep up with their financial reporting and compliance requirements. We have put together this article to help you understand what you need to do to stay on the right side of the relevant rules and regulations.

Does My SME Require Financial Auditing?

Public companies and large proprietary companies are required to have their financial reporting audited on a yearly basis. This, however, doesn’t apply to smaller, private businesses. There are some cases in which it may be mandatory for a small or medium enterprise (SME) to undergo an audit. If, for example, they operate in a particular industry or provide products and services to the government.

Even when it is not legally required, there are a number of benefits for an SME to request an audit. It gives you confidence in the accuracy, consistency and objectivity of your financial reporting while offering insights that better help you plan for future business growth and find areas for improvement. It may be good company policy, therefore, to have a financial auditor review company finances each year even when it is not required by law.

Compliance Audits for Clubs

Sporting clubs such as RSLs, tennis clubs, golf clubs and football clubs can also benefit from the services of a financial auditor. While most clubs won’t legally require auditing, as they will be considered either a small private company or charity, audits may be carried out in accordance with club constitutions and internal regulations.

Members of the club who want insight into how their fees are being spent will seek assurances about the organisational processes and overall financial health of the club in which they have a vested interest. The Australian audit process allows for the examination of financial reporting and internal control procedures to ensure a club is operating as effectively and efficiently as possible. Due consideration is given towards compliance issues, risks of fraud and mismanagement of funds.

Consult an Accounting Auditor in NSW

At Brown Auditing Services, we offer advice to a broad range of clients, from small private companies to sporting clubs and not-for-profits. Arrange an appointment with an accounting auditor today. Call 0428 661 200 or contact us online for a no obligation consultation in NSW and surrounding suburbs of NSW.