To understand how a company that Audit is ready will capture more market share, we must first understand the basics. What is market share? What is an audit, and who performs them? And how do I ensure that my company is Audit ready? Let’s look below.
Market share: Out of the total purchases made by customers for the same product or service in a market (in a country or a global market internationally), the percentage of the investment that goes to a company is its ‘Market Share.’
Audit: An audit is the examination and inspection of bookkeeping and accounts by an auditor and compared with the physical verification of the stock/inventory.
Auditors do auditing. An audit can be done internally or by external auditors to inspect all accounting information and bookkeeping in a company.
Internal Audit is done by the company’s employees or by the head of a particular department in a company.
External Audit is done by an external auditing company or by a team of external auditors. All government and private registered firms are bound to get an external audit performed annually. An independent company does an external audit. An external audit is according to laws and rules, financial statements, balance sheets, and cash flow statements of a company. The external auditor prepares an audit report after the completion of the auditing process. Audit report information can be used by investors, government agencies, and by the public. An external auditing company must be a registered and recognized qualified accountancy firm. The information provided by such an accountancy firm as an audit report gives a piece of reliable and unbiased information to its users.
Your business must use specific software for managing the accounting and other information of the company. There should be a well-established checks and balances system in the accounting software used in business bookkeeping and accounting.
The accounting software must be able to:
- Adjust and automate day-to-day accounting jobs and financial endings
- Eradicate the danger of manual worksheet mistakes
- Reduce the time required for an auditor to recheck your calculations
- Provide all necessary data to an auditor but do not allow editing or deleting options to any auditor.
Benefits of Audit in a business
- It is better to keep a check and balance in business by carrying out a regular audit. Especially when a company has employees, various offices, many technical works, and where a single person cannot run all the business operations, these factors provide chances of errors in business operations.
- Weakness in the accounting and financial systems can be made clear after audits. You can suggest improvements after an audit report.
- By performing audits, business owners do not have to check or get involved in accounting functions daily. Audits provide a way for business owners to check that accounting functions are running correctly.
- An audit report gives valuable information that critical decisions can be made, such as where internal controls are regulated, tax planning, or reducing the dangers of fraudulent practices.
- An audit increases the trustworthiness and dependability of a business. Information is available to its users.
- A company that is always Audit ready attracts more investors and customers.
- The overall rating of a business increase after regular audits.
- Banks, suppliers, and such users prefer companies in which audits are performed regularly.
- If the company has insurance, the audited accounts are given.
- If there are shareholders in a company, audits guarantee shareholders that the business is running a fair and accurate picture.
- When purchasing from different companies, the companies with regular audits carry more weight. Bulk purchasers have greater trust in Audit ready companies.
- An audit-ready business provides an actual financial status of a significant company for foreign entrepreneurs, banks, and investors.
Conclusion
Audit-ready companies always have up-to-date accounting data. This account information is always available to its users and auditors. Regular audits ensure clear and transparent accounting information. You can make wise and confident future decisions easier with regular audits. An audit-ready business equates to a company ready to get its market share due to the trust of investors, customers, and legal authorities in that business.
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