Benefits of an Audit – Auditor in Singapore
In Singapore, a statutory audit is required of all private limited companies unless they fall under the Small Companies exemption. To qualify for this exemption, firms must have total revenue not exceeding 10 million, total assets not exceeding 10 million, and they must not have more than 50 employees. An audit provides a summary of the firm’s financial health, providing shareholders with an unfiltered account of the firm’s financial progress and status. An audit probes into financial accounts, accounting software, receipts, and other paperwork. The auditor in Singapore involved will then present these reports to the board and offer invaluable advice on the firm’s operations and financial activities.
These are the benefits of undergoing an audit:
1. Assurance to Shareholders
An audit provides a detailed report of the firm’s operations and internal systems. Without this close examination, the firm’s operations and internal systems may worsen over time. Thus, the auditor in Singapore must closely analyze the firm’s management and operations, in order to identify systemic flaws and offer suggestions for improvement. An external audit by an audit firm in Singapore assures shareholders that the firm’s operation methods are always kept in check.
2. Sales Credibility
Undergoing an audit will aid in boosting the credibility of your firm’s financial statements, hastening the due diligence process that will occur when your firm is preparing for sale. Undergoing an audit and raising your firm’s financial credibility will instill confidence in the potential buyers of your firm.
3. Boost Investor Confidence
Your firm’s credit rating is an important consideration to potential investors and suppliers. An audit will heighten your firm’s financial credibility, amplifying credit ratings. Particularly, private equity and angel investors tend to prefer audited accounts for their investments. Thus, engaging an auditor in Singapore will help to boost investor confidence in your company.
4. Prevent Fraud Occurrence
An audit will also aid in spotting any fraudulent activity. A professional auditor in Singapore will be able to uncover suspicious fund transfers, wrongful usage of company resources and inappropriate corporate behavior by the Board. An audit can also help to single out flaws in the firm’s financial system and identify areas of improvement.
5. Operational analysis
An audit conducts an in-depth analysis of the firm’s operations and management. This allows the auditor in Singapore to sieve out corporate processes that can be improved, areas to be capitalized on and possible opportunities for investment.
In summary, an audit runs a full check on the company’s system management and operations, sheds light on the areas for improvement, increases credibility and provides assurance to shareholders. OneStop Professional Services is a professional audit firm in Singapore that has a team of experienced and highly trained individuals that are guaranteed to provide excellent auditing services for your firm. We use the most updated technology for our services, and we pride ourselves in being responsive and efficient, as we are always one call away. Choose OneStop Professional Services if you are seeking an audit firm in Singapore.
Originally published by onestop-ca.com