Fulfilling the government's requirement for a public company audit should be a hassle free experience. If you have hired a firm to audit your company, you should feel like you are part of the process. If the agency makes you confused about what they require, that could potentially cause the audit to be inaccurate. As a result, your business could be presenting false information to the public, which is a prosecutable crime. Below is some important information about public company audits that you need to know.
Proper public company audits should ultimately improve the way your company is managed. An audit can illuminate flaws in the organization, uncover employees who may be misusing their power, and allow you to increase the value of your company and its resources when all is said and done.
When a firm is auditing a company, the auditors should be looking at the minute details. They should be asking the management questions about recent changes in management, inventory, raw resources, and changing industry operations. Basically they should be asking any questions that would lead them to important information about changes in the way you do business. That information is vital to investors. Trying to conceal such information could be detrimental to your company, therefore auditors should know exactly what to look for.
There are several more things a proper audit will include, like looking at important account information. For example, if your company has a large un-collectable account, it could be an indicator that something else is wrong. For example, it could be the result of a client declaring bankruptcy and being unable to pay its account, or it could be some form of mismanagement. If your auditors can catch unusual statistics, they could lead you to fix minor glitches before they become major problems.
The auditing firm you hire should be prepared to explain their process to the management of your company and instruct the management to inform relevant employees about potential meetings. If this is not settled in advance, your audit could drag on and be a waste of time in the long run. Ultimately, it might not be completed in time to be submitted to the proper authorities.
What you should look for most in an audit is easy communication between you and the auditing agency, and that the process is made as convenient as possible. You shouldn't be left to find and fill out all the paperwork yourself, the auditors should be able to hand you a completed report at the end and also be able to candidly discuss any issues they found with your company's management. Following these guidelines, your public company audit should go smoothly and efficiently after you find the agency to provide the best auditing service.