Importance of audit in organization

An audit is a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements as well as non-financial disclosures present a true and fair view of the concern. Audit means evaluating the effectiveness of a company’s internal controls.

Every company has to maintain an effective system of internal controls for achieving a company’s business objectives, obtaining reliable financial reporting on its operations, to avoid misappropriation of its assets, fraud prevention within company and optimizing cost of capital. Some company’s also uses independent auditors with their internal to make audit more correctly.

It is important to know the state of company’s current financial condition to investors, lenders or creditors so they can base their financial decisions accordingly. Here are the top reasons to conduct an audit:

  • 1) To assure the effective operation of an organization.
  • 2) To Give confidence in management that the business is doing or performing well and company is ready to meet its goal and potential challenges.
  • 3) To maintain overall condition of company and enhancing the opportunities.
  • 4) To perform a review for the investors or shareholders to ensure that everthing stays up-to-date and legal.

The company who has effective audit system that enables to pursue and attain its various corporate objectives. Audit review the design of the internal controls and propose improvements and finds irregularities. Audit serves an important role for companies in fraud prevention. Many small organizations cannot afford to hire accountant to overlook their day- to-day financial records. Using external auditors provides time to time accounts and also verifies your numbers and also learns ways to improve your processes and procedures.

Auditors might come to know in which areas you have to increase cash flow and take more deductions or institute other capital-management techniques that improve your bottom line. Auditors help you to determine whether your business is in compliance with all applicable internal revenue service rules.

External auditor can catch small problems before they become serious and help your business get back on track. Credibility is important to small business, cause in initial stage they are trying to build positive reputations. Internal auditors cannot criticize the company’s internal processes because they are part of the company but external auditors, can observe operations from outside and determine where the company is wasting time or money.

External auditors focus on improving business processes to reduce the amount of risk of misreporting financial data. An external auditor works with the single-minded purpose of improving the business. Ryggrad takes a step forward when it comes to audit innovation. We are rigorously working and enhancing methodologies, technologies and strategic alliances so that the auditing is more comprehensive and financial reporting.

Ryggrad consulting is involved in providing audit consulting services to its clients. We believe in transparency of an organization.

We are engaged in audit consulting services which will help our clients in:
  • • Inspection of financial books of accounts to reveal financial position.
  • • Risk management and risk reduction to identify fraud.
  • • Strategy and operations audit to gain knowledge of proper utilization of resources in.

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Ryggrad Consulting, C/O Sunil Hitech, 6th Flr, MET building, Bandra Reclamation, Near Lilavati Hospital, Bandra, Mumbai 400050