Auditors assist businesses and individuals with managing their financial processes. Auditors are skilled in financial reporting, but are also certified to audit financial statements. By law, all businesses need to be audited. Auditors confirm that their clients stay within legal parameters and help them plan for the future.
Popular Auditor Services Include:
Preparing financial statements
Auditors are skilled in accounting processes. South Africa requires companies to keep detailed financial statements and to submit reports on them. Auditors can help businesses with all activities in this process. Auditors can form part of the business’ employees, or be hired as an external party.
Reporting on financial statements
The South African economic climate makes for challenging business environments. There’s also a lot of competition in the market. Auditors draw reports from a company’s financial statement to determine the health of the business. This helps with future planning.
Forensic auditing
Many South African companies experience fraud and other criminal problems. Fraud is performed by employees or external parties. Auditors are skilled in tracing these individuals via forensic auditing. They can assist in obtaining proof and pinpointing the criminals, so they can be prosecuted.
Helping to improve internal structuring
Running a business well requires experience and skill. South Africa has many well trained auditors who can help business owners build their companies. Auditors assess a company’s structure and advise on improvements, so business can grow faster.
Making sure tax processes are followed
South Africa has strict tax laws which is enforced via SARS. Auditors make sure their clients adhere to SARS’ requirements, so no penalties or legal processes are required.
5 Tips when Hiring Auditors
1. Confirm their certification and reputation
Auditors go through years of study and need certification before they’re allowed to practice. Ask for these credentials before you trust an auditor. If you trust the wrong person he or she may give you faulty advice, or your own records may be frowned upon by SARS.
2. Allocate a work space
When an external auditor is called in to review your financial reports, make sure a comfortable, private and spacious area is prepared. This will help the auditor work faster, more accurately and your staff’s general routines won’t be disrupted.
3. Enquire about necessary paperwork
Before an auditor starts working on your records, make sure you supply everything he or she may need. Ask for a list of all required documents, so you can prepare them timeously. An audit may be stressful, but you can make it as easy as possible for everyone involved, which results in a more positive experience.
4. Plan your calendar around them
When auditors are working with your financial reports, they may need feedback or information from you at any given time. It’s best to sort it out directly, so their process isn’t prolonged. Make sure you clear your calendar as much as possible, so you can help them when needed.
5. See them as partners, not trespassers
An audit is stressful, because an auditor may pick up on problems in your financial structure. You shouldn’t see this as an external attack, but rather as helpful advice. The information an auditor gathers during an audit can prevent future problems from happening and help you run a business in a more secure, legal way.