08 Jan Why Do You Need An Auditor?
An auditor is an impartial third-party who examines your company’s books of account and records of transactions to provide assurance that your company’s transactions are accurate, the books are balanced, and the financial statements can be prepared in accordance with Generally Accepted Accounting Principles (GAAP).
Auditors also help companies prepare for all relevant federal, state, and international regulations.
An auditor performs one or more of the following services: general audit; compliance audit; advance pricing agreement; performance audit.
The Importance of Professional Auditing Services
A business cannot live without money, but it also cannot live without trust. Trust is often a commodity traded for money. The real value in a company going about its business is the integrity and competency of those who are responsible for managing the financial affairs of that company. To further solidify their position, companies today hire an external firm to monitor their internal control systems and to verify that they are properly performing their accounting functions.
External auditors are hired by companies all over the world, especially in emerging economies or emerging markets such as China, India, Thailand and many other Southeast Asian countries. Finding an approved auditor might not be easy since there are so many new audit firms coming up every day with advanced computer systems in place that speed up information flow within the organization.
The companies with the biggest auditing needs are usually large, complex and cash-rich corporations that have the resources to hire a professional firm. Since these businesses have been in the competitive game for years, they need to make sure they are making money and doing so in a legal manner. In other words, they need an external auditor to review their books of accounts and scrutinize their financial preparedness as a whole. Comparing financial information between various departments can help show that a company is competitively equipped to compete globally, or even locally within its own industry.
Benefits of having an auditor
The advantage of using an auditor is that it is less expensive than using other professional services such as lawyers or accountants. For example, if a company (XYZ Corp.) wanted to hire a lawyer to look through their contracts, the cost would be much more expensive than hiring an auditor, which is why professional auditors are becoming more necessary in today’s world.
However, the biggest disadvantage audit firms have is that they are not allowed to officially give out any recommendations or comments on the subject of their audit. An external auditor cannot make any comments or even offer advice on what procedures or policies are most beneficial for the company. An auditor always makes sure that his/her client has implemented all internal controls and complied with all relevant rules and regulations.
We at Thakur Chabert provide high-end audit and assurance services by adding value at every step of the process through our proactive approach in order to benefit your organization and protect shareholders’ interests.