What an Audit Firm Does and Doesn’t Do
Having an auditing firm in Singapore for your business is not just about settling accounts, arranging adjusted entries, and writing financial statements. They can also help your business’ performance and efficiency. If you’re considering on hiring one, here’s what an audit firm does and doesn’t do.
What an audit firm does
Identify Frauds and Errors
No one is perfect, and everyone makes mistakes, and that applies to your accounting department. Their errors are not deliberately on purpose. It is an unintentional mistake they have not noticed before, and that is what an audit firm in Singapore does. They review financial statement to correct errors and identify frauds (if there is any).
Performing Analytical Procedures
As part of their incident repose services, they have to cross-check all the financial records if it matches the inventory records. This process helps if your finances and stock accounts are accurately correct, and no data were lost.
Balancing Accounts and Transactions
They would also perform assurance accounting checks to make sure that your business’ financial statements are free from errors. Usually, they run through balances and transactions and recompute everything from top to bottom.
Undergo Physical Inventory
To make sure all is well, some auditing firm performs periodic physical inventory, whereas they confirm the number of products and stocks that your business has.
What an audit firm doesn’t do
Execute Transactions on Clients Behalf
First of all, this is not part of their job description and this out of their control. No matter what orders you have, they can’t do a transaction on your behalf so ask your accountants or managers instead.
Hire or Terminate Employees
Again, this is out of their control because they correct financial statement errors and not your employees’ behaviours. It’s a job that your HR department must do.
If you’re looking for a reliable audit firm in Singapore, get in touch with Nexia TS. They offer various data and tax advisory services at an affordable rate!
Resource:
https://visual.ly/community/Infographics/business/what-audit-firm-does-and-doesn%E2%80%99t-do
