Performing audit is an important part of the business and companies all around the world conduct audit of their business irrespective of the size of the business. The main objective of the audit is to detect and prevent any wrong or illegal activity in the business and apart from this, there are many benefits of financial audit for the company and in this blog, we will let you know those benefits.
Following are the benefits of the financial audit to the company:
- Determine profit or loss: By financial audit, you get the details of all the workings of the company and that is very much helpful to the management to decide the profit or loss caused to the company by its activities and based on that the further decisions can be taken.
- Helps to get the investment for the company: Businesses require loan/funds to expand their business or for the growth of their business and this capital can be provided by banks or investors and banks and investors provide these loans based on the financially audited statements of the business and so there is very much need of the financial audit in the business.
- Maintain consistency: If during the audit, auditor finds that the statements are not as per the rules of the central authority then he may suggest you the right measures to correct the statements and in this way, you stay consistent about your financial statements and abide by all the rules & regulations.
- Helps in determining total tax: Tax calculated by auditors is accurate and thus your company has to pay tax on those profits. In different countries, there are different central tax authorities that collect the tax and it is important you pay the right taxes to the authorities otherwise you may face legal penalties. So, in Bahrain, there is VAT and the authority regulating it is National Bureau for Revenue (NBR) and NBR contact number is 80008001, so you can contact them if you have any query.
- Helps in fraud detection: One of the major advantages of financial audit is that it helps in detecting any fraud in the company and if any such activity or area is found then you can take the corrective measure to run the business smoothly.
- Increase the transparency and goodwill of the company: By audit, the smallest details come out and that means the company is very fair and has nothing to hide and this will increase the transparency of the business and the confidence of the stakeholders will increase and also the goodwill of the company will increase.
So, these are the benefits of the financial audit to the company and thus it is suggested to conduct the financial audit in your company with the help of some experts of this field.
We, Chaturvedi Associates are among one of the best audit companies in Bahrain providing professional auditing services and many other financial services to the companies worldwide.