Every business deals with money. That is why any company that wants a positive image and a spotless reputation with investors and lenders should have its financial statements audited. Read our guide to learn more about the process and how to prepare for it.
Why you need an audit
A financial statements audit is a review of the company by an independent auditor, followed by a report based on the findings. The audit is mandatory only for certain companies, such as:
- public interest entities;
- public joint-stock companies;
- companies in the extractive industries;
- financial institutions;
- natural monopolies in the national market.
It is also mandatory for medium-sized and large enterprises, meaning companies that exceed at least two of three thresholds: an average of 50 employees, EUR 4 million in balance-sheet assets and EUR 8 million in net revenue. If you think an audit of financial statements is a punishment for business owners, let us dispel that myth. An independent auditor's report builds the trust of clients, lenders and investors in your company, and the owner also receives full information on weaknesses in internal control or finances, with proposals on how best to solve each problem. An independent audit also gives the parties to a future deal reliable evidence about the company's figures. It is carried out under international standards and takes the specifics of your business into account.
So a financial statements audit is nothing to fear: it only works in your favour. The time, energy and stress you save can go into something more useful and enjoyable.
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