What is an Audit?
An audit provides an independent opinion that the financial reports of the entity are not materiality misstated and/or provides this assurance to the reader unless otherwise stated. But that’s not all an audit does.
An audit is undertaken in real time, it deals with the state of play both in the present and the past, primarily at the date of the audit. An audit does not only report past performance but also has a focus on current performance and stability. An audit is the barometer for a business heath check and brings management, directors, owners and stakeholders to account.
Audit deal with integrity from the auditee’s perspective and the auditors perspective. The auditor has a statutory responsibility at law to report to the appropriate authority of breaches of the law and has a much a wider perspective than one might think (NoClar). However, the auditor is also bound by the legislative privacy legislation (Privacy Act). So you information is safe.
An auditor is also bound by the APES standards and the Australian Auditing Standards where applicable. An auditor must also have regard to the Australian accounting and reporting standards in signing the financial statements of an entity.
Given all this compliance, an audit can be very engaging. One meets some great people and acquires a knowledge of the entities strengths and weaknesses and a sound knowledge of the business The client always gets feedback on audit findings and a chance to rectify any issues.
In this way an audit adds value to the business.