Why Does a Company Need to be Audited and Reviewed?
Corporate Secretary Service Indonesia – In addition to business processes, a company audit & review is an important activity that you should do regularly. Here are the reasons why companies need to be audited. In addition to carrying out routine business processes, a company audit is an important activity that must be carried out periodically. The audit & review process is conducted on the company’s financial statements, which serve as the best source of information on the company’s current condition.
Why does an Audit Need to be Done?
In its implementation, there are two types of audits, namely internal and external audits. Internal audits are conducted by a team within the company to improve the efficiency and effectiveness of company performance.
Meanwhile, external audits are carried out by qualified independent institutions, such as the Public Accounting Firm (Kantor Akuntan Publik / KAP), and aim to increase the company’s credibility in the eyes of the public and other stakeholders. For companies that are growing rapidly, periodic audits are no longer an option, but a necessity. Some of the reasons that reinforce why companies need to be audited are:
Provide assurance to shareholders
When your business is growing fast, shareholders tend to be less involved in daily operations and prefer to play a strategic role only. An audit will help shareholders assess and review financial accuracy and internal system controls. This includes finding system weaknesses as well as non-compliance with internal procedures. In short, the audit process is a guarantee of your company’s credibility in the eyes of shareholders.
Assert yourself as a law-abiding company
The sustainability of a company cannot be separated from the applicable law. The audit & review process will ensure that your company has carried out business processes according to procedures and complies with applicable laws and regulations in Indonesia. Regular audits also show the company’s willingness to update with the latest regulations. Of course, this makes the company grow faster because it is able to be responsive and adaptive to all changes that affect the course of business.
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As a form of organizational review
An audit allows you to dive deeper into the ins and outs of your business. An independent auditor’s perspective gives you a different understanding of the business. Auditor findings can identify where systems or procedures can be improved, as well as how to create opportunities to attract potential investors. In fact, working with an external auditor who has experience with similar client companies can provide more insight into managing the business, opportunities for growth, and risks that may arise in the future.
Reduce the risk of fraud
Audits can also identify fraudulent activities that occur within the company. Thanks to the audit process, you can find out what system weaknesses have been making the company lose money. It is not impossible to find staff involved in the fraudulent practice. From these results, you will get recommendations on how to improve or prevent similar things from happening again.
Protect company assets
How to protect company assets is not just a matter of storage and maintenance, but also recognizing the risks that can endanger these assets. Moreover, risks can come from anywhere, including internal companies. The audit process will help companies identify problems, risks, and system weaknesses that could potentially jeopardize company assets. Armed with the findings, the company can take preventive and corrective actions.
Don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business, also when you need audit & review. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!
