Pre-Requisites of an External Audit

Feb 2019

A business entity is established with an aim to enter profit by making a legal business transaction. Since the point of establishment, an organization carries out multiple exchanges with internal and external shareholders. Now, scrutinizing these business activities with the help of company audit process turns out to be extremely essential. An internal audit service is performed within the organizations, whereas in the case of an external audit, a third party is appointed to examine the business records. If you are a business owner, you need to make sure of certain essentials that are to be maintained before an external audit takes place.

1.Proper Documentation

Documentation plays a great role in every step of business. Maintaining the company docs serves to be one of the core tasks that every business entity should follow. Prior to facing the external audit process, it becomes easy if all your document is arranged in one place and are easily accessible. This also highlights the neatness maintained in the work. Prepare a list of documents that need to be presented. This will help you to keep a check on the required essentials and avoid any kind of confusion.

2.Abide by Industry Standards

It becomes a plus point if being a business owner, you are able to understand the norms set by the industry where your business prevails. It gives you clarity regarding what the necessary wants are, and can initiate the necessary steps to be taken accordingly. Before an external audit takes place in your company, take time to have a look and understand what it is all about. Having knowledge regarding the industry standards will help you to identify the gap and fulfill the same, and also and avoid unnecessary chaos.

3.Involve Professional Experts

The in-depth knowledge of finances and company internal processes are well-known by the subject experts. They turn out to be the best ones to reply to any query that stands during the external audit process. If you have outsourced any of your business segments to respective subject matter experts, then involve them during the audit process. Selecting the best expert helps in building a good image in the eyes of the external auditor, which ultimately enhances the brand value.

4.Ascertain the Insights

Once you are in sync with your subject matter experts, revise the subject matters to identify if they are according to the requirements. This not only helps you to identify the gap but will also help you to figure out the necessary tasks to be done. Let your subject experts and auditors club together and understand the urgent needs and take the steps accordingly.

By now, you have got an idea of how to tackle with the external audit process. It involves a lot of procedures, but then it is one of the needs of a business entity, which you can’t avoid, and if you do so, it will lead to legal conflicts. On the other hand, it is also important to know who has turned out to be your business entity’s external audit.  Choosing the best external auditor can solve and bring out the complete list of flaws, recovering which will bring back your business back in the track. If you are looking for an external auditor, you can rely on us. At Jaxa, we provide the best services regarding company audit process, with an aim to boost your organization to the next level. To proceed ahead, do contact us-we’d be glad to assist.