Many businessmen still wonder if they should really do one auditing external to your company. In non-mandatory cases, the real need for a cost of hiring auditing it is still subject to doubt. But before talking about its benefits, it is worth mentioning that, if there are plans to make the company a publicly traded company, auditing external is mandatory in compliance with Law 6,404/76. The same is true for merger, incorporation, division or consolidation processes, in accordance with this Law and also Law 6,385/76.
In these cases, a factor that justifies carrying out the auditing external is the transparency and credibility of the business. The owner must prove the soundness of his business to obtain loans and make investments, for example. And how can we not apply this importance to companies that are not required by law?
The endorsement of auditing support the information that the company published in its reports. It brings credibility and gives employees the opportunity to correct possible errors and arrive at the correct numbers. Partners and investors are safer and more relaxed with the impartiality of auditing external. When using financing with financial institutions, interest rates and other conditions can be better negotiated if the company presents audited information to banks.
In cases of expansion in a company's business, auditing can contribute to evaluating whether there are activities in the company that can be outsourced or reorganized, with economic benefits and conditions to remain focused on the company's priority activities.
If a auditing if contracted in a partnership relationship, smaller companies can benefit from this type of external consultancy in several ways. The first of these is a review of the accounting organization and accounting practices . Because, no matter how good the accountant is, it is common to observe problems with internal control processes that hinder the generation and control of information in an organized manner and that it is possible to benefit from accounting practices that are more appropriate to the characteristics of each company, such as methods of depreciation of tangible and intangible assets, since it may be that the company may be depreciating at levels higher or lower than those technically adequate for its characteristics, thus it may be showing less or greater profit than it can be distributed or taxed inappropriately.
Through the guidelines of auditing , the entrepreneur and his team will be able to see better workflows to organize themselves. It is often common for smaller companies to not yet have well-defined methods already established for their procedures. A auditing , through its analysis and data collection, will be able to highlight to the responsible area what is important and what is the best way to present the information to investors, partners and other bodies.
Another great advantage of auditing external is the possibility of detecting risks at an early stage. After collecting the data, if there are any problems, the entrepreneur and his employees will be able to adapt the situation quickly. This is beneficial for several reasons, including the fact of not building more numbers on top of erroneous metrics that can be misinterpreted.
In 2019, the study “The Value Relevance of Financial Statement Audit in an Emerging Economy” highlighted the importance of auditing for business. Conducted by Lawrence O. Okoye, the study analyzed the relevance of auditing financial for companies in an emerging economy. The results showed that the auditing financial has a positive and significant impact on the value of companies.
Several companies have their own rigorous methodology for carrying out auditing external, precisely to collect the data impartially and present the results to the contractor. Evaluate and choose a auditing external to their business, leads entrepreneurs to improve the company's operational management, as well as to establish or review strategies and seek investors and financiers of their businesses.
In general, the auditing may be linked to big business or crises. In this context, auditing it seems to be something not pleasant, to which only complex corporations should submit. In the meantime, a auditing external can not only be done in a smaller business, but it can also be extremely important for the sustainable growth of the company.
Contact TATICCA — ALLINIAL GLOBAL, which operates throughout Brazil and globally, with integrated auditing, accounting, tax, corporate finance, technology, risk advisory, business consulting and training services. For more information, visit www.taticca.com.br or email taticca@taticca.com.br and learn more. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.
