What Is an Audit and Why Do I Need to Do One?

An audit is a type of maintenance check carried out on your business accounts by a specialist auditor. There are many different types of audits, but in general they all involve someone checking over the health of your accounts to ensure their accuracy.

Here are some more details about the types of audits available, as well as some of the main reasons you may choose to have one.

What's Included in an Audit?

What’s included in an audit depends on the type of audit being carried out. At Keith Graham, we carry out a range of audits depending on the needs of the client, and these include:

• Statutory audit – this government procedure involves checking the details of the bookkeeping, records, bank balances and payments to ensure you represent your financial situation accurately.

• Internal audit – this is like a maintenance check you can use to ensure your business's risk management and control processes are effective.

• Compliance auditing – this involves reviewing your business's adherence to regulatory guidelines, including reviewing your security policies, user access controls, risk management and more.

• Specialist audit – this covers a specific area of your business, and it is a bespoke service that is different for all organisations. Contact us for more information on this.

Whichever type of audit you need, the general process involves auditors visiting your business premises and going through your books. Many businesses choose to have a regular audit, such as a quarterly or annual service. But you might choose to arrange an audit following a large change at your business, or because you suspect fraud has taken place.

Why Do I Need an Audit?

One of the main reasons for arranging an audit is to provide you with peace of mind that your business accounts are compliant with statutory requirements. In addition, when we carry out an audit, we will also identify weaknesses and strengths in your finances, which you can then use to improve your results.

One of the major benefits of an audit is that it reduces your exposure to fraud. Fraud can be a big problem for businesses that can cost a lot of money, and we will minimise your exposure by spotting irregularities early on. Indeed, carrying out an audit regularly can be a useful fraud deterrent.

Often directors will want to have assurance that everything is running as it should, and an audit can provide them with this information if they are not involved in the accounting side of the business.

Audits can also lead to getting specialist advice on areas like tax planning, fraud reduction and the tightening of internal controls.

If you are planning on selling your business in the next few years, an audit can also provide your figures with greater credibility when they are submitted to purchasers.

An audit can also simply provide greater credibility to your financial accounts in general in certain situations, such as should you need to make an insurance claim.

How to Run an Audit

The best way to run an audit is to hire an experienced audit specialist. At Keith Graham, we are external auditors authorised by the Institute of Chartered Accountants in England & Wales (ICAEW) to provide audits to businesses across Hampshire and Surrey.

As experienced and independent auditors, we undertake audits for our clients quickly, efficiently and, most of all, accurately. So let us know if you are thinking about arranging an audit, and we'll be happy to discuss it with you.