Many entrepreneurs still ask if they should really make a auditing outside your company. In cases where this is not mandatory, the real need for a cost of contracting auditing is still open to doubt. But before we talk about its benefits, it is worth mentioning that, if there are plans to make the company a public company, the auditing
external is mandatory in compliance with Law 6.404/76. The same goes for merger, incorporation, split or consolidation processes, in accordance with this Law and also with Law 6.385/76.
In these cases, a factor that justifies the performance of the auditing external is the transparency and credibility of the business. The owner needs to prove the soundness of his business to obtain loans and make investments, for example. And how not to apply this importance to companies that are not required by law?
the endorsement of
auditing bases the information that the company published in its reports. It brings credibility and gives employees the opportunity to correct possible errors and arrive at the correct numbers. Partners and investors are safer and calmer with the impartiality of auditing external.
When resorting to financing with financial institutions, interest rates and other conditions can be better negotiated if the company presents audited information to the banks.
In cases of expansion in a company's business, the auditing can contribute by assessing whether there are activities in the company that can be outsourced or reorganized, with economic benefits and conditions to maintain focus on the company's priority activities.
If the auditing
is hired in a partnership relationship, smaller companies can benefit from this type of external consultancy in several ways. The first of these is a review of the accounting organization and accounting practices. Because, no matter how good the accountant is, it is common to observe problems of internal control processes that make it difficult to generate and control information in an organized way and that it is possible to benefit from accounting practices that are more adequate to the characteristics of each company, such as for example, methods of depreciation of tangible and intangible assets, as it may be that the company may be depreciating at higher or lower levels than those technically adequate for its characteristics, thus being able to demonstrate lesser or greater profit that can be distributed or taxed accordingly not suitable form.
Through the guidelines of auditing, the entrepreneur and his team will be able to perceive better workflows to organize themselves. It is often common that smaller companies do not yet have well-defined methods already established for their procedures. A auditing, through its analysis and data collection, will be able to highlight for the responsible area what is important and what is the best way to present the information to investors, partners and other bodies.
Another big advantage of auditing external is the possibility of detecting risks at an early stage. After collecting the data, if there is any problem, the entrepreneur and his collaborators will be able to adjust the situation quickly. This is beneficial for several reasons, including not building more numbers on top of erroneous metrics that can be misinterpreted.
In 2019, the study "The Value Relevance of Financial Statement Audit in an Emerging Economy" highlighted the importance of auditing for business. Conducted by Lawrence O. Okoye, the study analyzed the relevance of auditing finance for companies in an emerging economy. The results showed that the auditing finance has a positive and significant impact on the value of companies.
Several companies have their own rigorous methodology for carrying out the auditing external, precisely to collect the data impartially and present the results to the contractor. Evaluate and choose a auditing
external in his business, leads the entrepreneur to improve the company's operational management, as well as establish or revise strategies and seek investors and financiers for its businesses.
In general, the auditing
it may be linked to big business or crises. In this context, the auditing seems to be something not pleasant, to which only complex corporations should submit. However, one auditing external can not only be done in a smaller business, but it can be extremely important for the sustainable growth of the company.
Get in touch with TATICCA – ALLINIAL GLOBAL, which operates throughout Brazil and globally, with integrated auditing, accounting, tax, corporate finance, technology, risk advisory, business consulting and training services. For more information, visit www.taticca.com.br or e-mail taticca@taticca.com.br and learn more. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.