Similar to accounting, an audit is a crucial part of the business. What an auditor does is check and examine the financial report, including the income statement, balance sheet, cash flow statement, statement of changes in equity, and more, of an organisation. It can be done by an in-house auditing team or an independent audit firm in Singapore.
Auditors adhere to the auditing standard when checking the financial statement. After the auditing, auditors will submit a report stating their findings and opinions regarding the result.
As mentioned, companies can outsource auditing services, similar to tax services in Singapore. But is it really the right path for your organisation?
7 Reasons To Choose An Independent Audit Firm In Singapore
It is not new for some organisations and businesses to outsource services, including accounting, tax, and M&A advisory in Singapore:an audit is not an exception.
If you car considering outsourcing auditing services, these are the reasons that can convince you more:
1. It is Time and Cost-Effective
Time is gold in businesses, and the auditing process can be time-consuming. Companies spend weeks and months training their auditors. Training should be consistent as well, especially when in-house auditors come and go in the company.
Besides training, the entire auditing process is time-consuming and rigorous as well. The in-house team may take longer to finish an office report if they lack people.
Another factor to consider is the cost. Training costs the company money. Furthermore, hiring members of the in-house audit team means more monthly salary, benefits, and compensation to pay.
Partnering withan audit firm in Singapore will free up your time primarily because the audit firm takes over the training process. Much better, they will provide experienced and skilled auditors who require little to no training. On top of that, outsourcing is cheaper since the company pays for the service, not the people doing the service.
2. It Gives Time To Focus On The Business
As mentioned in the first item, partnering with an auditing and public accounting firm in Singapore will save managers time. Rather than manage the hiring, training, and onboarding of auditors, managers can use their free up time to focus on core business tasks. It also means an increase in productivity.
3. Independent Audit Firms Have Experts
Audit firms hire excellent auditors and train auditors to be the best in the city. Not only do you get assurance that your financial reports are thoroughly checked, and you can obtain accurate auditing reports, but you can also get expert advice and opinions. These recommendations and suggestions can help reduce terrible business decisions in the future and give entrepreneurs a clearer picture of their company’s financial status.
4. Assures Business Compliance
Audit firms comply with the standard auditing rules implemented by the respective governing body. Most importantly, these firms are up to date in auditing policy changes.
It is a challenge for the in-house auditing teams. Managers must ensure their teams comply with the policy and are keeping tabs on the policy and regulation changes.
What happens if your company does not comply with the rules and regulations? Firstly, not complying with the regulations means inaccurate reports. Inaccuracies may lead to terrible business decisions in the future.
Secondly, not complying with the regulations can also mean that the company is not being transparent with the investors and shareholders. These irregularities could tarnish the reputation of the company.
Lastly, an inaccurate compliance audit may cause penalties and legal entanglement with the law. An independentaudit firm in Singapore guarantees compliance with these rules and regulations.
5. Independent Audit Firms Have Scalability
Scalability is one of the advantages of an independent audit firm. When the business grows, there will be an influx of money in the cash flow as well as the need to increase employees. Generally, the company would also need more staff for the auditing department.
The company will soon face hiring, training, and onboarding again. Moreover, additional expenses for the salary, benefits, and compensation. But what if the company begins experiencing dipping and needs to lay off staff?
It is where an independent audit andpublic accounting firm in Singaporegets the upper hand. These firms have scalability, meaning they can just pull some of their staff from your service when you need to scale down. They will be reassigned to another company. On your end, you don’t have to lay off employees bitterly. It is less painful for both parties.
On top of that, when you need to scale up, the firm can easily assign experienced auditors to you immediately. No need for time-consuming job posting, interviewing, and training.
6. Access To Fresh Perspectives
As mentioned, outsourced audit firms are independent, meaning they don’t have deep insights into your company and organisation. But it does not mean they have not dealt with companies from the same industry as yours.
With the familiarity with your company’s industry, your audit firm’s opinion and recommendations are more insightful, in addition to the fact that expert auditors are working for you.
Hiring an outsider is not really a disadvantage. Third-party firms have fresh eyes, therefore can give objective and unbiased opinions, recommendations, and assessments. There is no room for inside jobs and coverups in case of fraud in the organisation. In this situation, forensic accounting services in Singapore are necessary.
7. Increases Your Networks
Besides the expert opinion and recommendations on the auditing matter, your auditors can also introduce you to new people and help build your network. As mentioned, they have worked with different companies in the industry. They may give you some valuable contacts of their previous clients as well as refer your service to them.
They can also introduce you to companies and vendors open for partnerships. Who knows? Maybe your audit firm knows the best business partner for you.
Furthermore, some audit firms provide services other than auditing. They have a pool of M&A advisory teams in Singapore. Your firm can give you the point of contact for these experts.
There are several considerations when choosing anindependent audit firm in Singapore.The firm must have complete certifications, has a wide range of services, and is always available.
Nexia TS provides businesses with a range of services, from M&A advisory, to auditing, and forensic accounting in Singapore. Visit Nexia TS today.