As the company grows, the volume of transactions increases, business units increase, and operational processes become more complicated. In this condition, the more risks that the company must monitor and the role of audit Services is increasingly needed.
Why is that? The use of audit services in the company, can ensure that all operational and financial aspects are under control, comply with regulations, and do not have a detrimental impact on Business Continuity.
What Are Audit Services?
Audit services are professional services performed by auditors to examine, assess, and verify the accuracy of a company's financial statements. The audit of financial statements is usually carried out by auditors from public accounting firms (KAP) that have been legally recognized.
In addition to financial statements, auditors can also examine various other things in a particular company. Such as operational checks, compliance, procurement of goods and services, performance, and so forth.
Audits on these matters can be carried out by internal auditors, inspectorates, independent consultants, to non-KAP professionals who are competent in their fields.
In a company the audit activity is not just a workflow formality. But the main pillar to ensure the integrity and sustainability of the business in the future.
Types Of Audit Services
As an economic organization to carry out business activities, there are several types of audits that are commonly needed by companies. Among them are the following.
1. Financial Statement Audit Services
Report Audit is an examination of the company's financial statements. This examination includes not only how the company organizes finances in business activities, but also includes an assessment of its reasonableness.
Whether the company has prepared a report in accordance with the guidelines, complete, and accurate according to existing standards or not. Such as the statement of Financial Accounting Standards (PSAK) and International Financial Reporting Standards (IFRS).
2. Corporate Financial Audit Services
A company's financial Audit is a broader examination than an audit of financial statements. This type of audit can include audits of financial compliance, financial processes, internal controls related to transactions, efficient use of budgets, financial investigations, accounts payable, and so forth. This Audit can be carried out by KAP or internal auditors of the company.
3. Operational Audit Services
Operational audit services focus on handling the company's operations. This Audit aims to monitor the management of the company's resources. Whether these resources have been used effectively, efficiently, and economically or not.
In this type, auditors examine the procedures, processes, and performance of employees who carry out management tasks.
4. Compliance Audit Services
Furthermore, the type of audit that is commonly used by companies is compliance audit services. This audit service ensures that the company's activities comply with government regulations and existing rules. Both in accordance with the Financial Services Authority (OJK), taxation, environment, and other laws.
5. IT Audit Services/Information Systems
Audit services on Information Systems aims to evaluate the security, efficiency of Use, and compliance of information technology systems of a company.
This service will examine all aspects of the technology used by the company. Such as system security, access control, data management and backup, IT infrastructure, business systems and applications, operational procedures, IT Risk Management, to regulatory compliance and standards.
Why Do Companies Need Audit Services?
Along with the development of an increasingly complex business, audit services are needed by companies because of several things as follows.
1. Ensure Accurate Financial Reports
Financial statements are one of the parts that are vulnerable to fraud. The value of the budget can look large in the report, but the amount of goods received can be very small. This discrepancy is an indication of corruption, so an audit is necessary to ensure that there are no irregularities.
2. Ensuring Regulatory Compliance
All forms of activities carried out by the company must be in accordance with applicable regulations and rules. So to ensure compliance, the audit process by an independent external party needs to be carried out.
3. Identify risks and opportunities
The audit process focuses not only on the activities of the company that have been carried out, but also the risks and opportunities that may occur in the future. By identifying them early on, companies can take precautions and plan strategic steps as needed.
4. Business Process Optimization
Audit services provided by auditors also recommend several things that can improve the efficiency and effectiveness of business processes. That way, companies can improve their performance and optimize existing resources.
5. Improving Company Reputation
Audit conducted by a company, assessed can be one way to improve the reputation of the company.
Therefore, companies that want to be audited are considered to be able to demonstrate the company's commitment to complying with the law, reliably reduce the risk of irregularities, and are open to inspection. Thus, investors are more trusting to invest capital and business partners are more comfortable working together.
Examples of common Audit services offered
- Audit of financial statements - assess whether the company's financial statements are in accordance with accounting standards, free of misstatements, and presented reasonably. The auditor's assessment is written in the form of an opinion.
- Compliance Audit - ensuring the company complies with laws and regulations, specific industry regulations, and internal company policies.
- Operational Audit - ensuring the company uses resources efficiently and effectively.
Tips For Choosing A Professional Audit Service Provider
If your company is looking for professional audit services, there are a few things to consider.
1. Have Professional Certification
One of them is professional certification. Make sure the auditors who will audit your company are professionally certified. Such as certification Certified Public Accountant (CPA) which signifies the title of the most qualified professional accountant.
The certification is proof that a person has the relevant knowledge, can plan the best financial strategy, and understand the complex tasks that will be carried out.
2. Experienced
It is also important to ensure that both the auditor and the hood to be used are professionally experienced in their field. An experienced KAP can potentially be relied upon to handle finances in a variety of complex situations.
3. Easy To Contact (Accessibility)
Make sure the audit services that will be hired are ready to be contacted at any time when you want to ask questions, ask for financial advice, or consultation. Either by phone, email, or social media. This accessibility indicates the professionalism of the auditor in handling his work.
4. Reputable Professionals
The reputation of an audit service provider can indicate the quality of a particular audit Service office. This can be an indicator to assess their professionalism, reliability, and integrity.
5. Offers Various Other Services
Make sure that the audit Services Office offers other relevant services. Such as bookkeeping services, taxation, business advisory, legal, and so forth. The more services available, the easier it is for a company to rely on them when it needs additional services.
Closing
Audit services can be one way to maintain the business continuity of a company. The rapid development of business and the complexity of regulation are crucial elements that cannot be ignored.
Companies need to ensure every operational and financial process runs according to standards and is able to adapt appropriately.
Audits conducted by auditors allow companies to identify risks that may occur in the future and know the opportunities that can be taken. That way, the results of the assessment can be the basis for more accurate, strategic, and sustainable decision making.
If your organization plans to conduct audits and needs a reliable application, Audithink can be an innovative solution for audit management. Visit website Audithink or submit a demo now and see how this internal audit software can change the way you manage your audit process in a more efficient, accurate, and integrated manner.
