8 Ways to Handle a Business Audit Like a Pro
There is no doubt that preparing for an audit can be a highly complex and challenging procedure because you have to look after many different factors.
However, you can make this process much easier and quicker by planning in advance and following some important strategies to handle every business audit like a pro.
Generally, if you rely on a professional audit firm in Malaysia, you will be in a very good position to get through an audit.
However, you should also have strong internal working procedures to avoid any issues during an audit.
Following are the top eight ways of surviving an audit:
Spend more time preparing for the audit, being accessible during audit fieldwork, and communicating with everyone engaged in the audit process both before and after the year-end closure.
Stress and frustration may be reduced with proper preparation and clear expectations. You should treat audit preparation as an essential activity to stay ahead.
It will help you in cutting down the time it takes to prepare for the audit on an annual basis. Furthermore, you should also focus on keeping a channel of communication open between the business and the external auditors throughout the year.
As a result, there will be fewer surprises, and the organization can make the required preparations or modifications.
2. Implement Modern Accounting Standards
The audit of your company may be impacted by changing accounting standards. Companies should keep up with the modern standards to handle or monitor data in a different manner.
Moreover, you also need to consider whether accounting professionals require any extra training or knowledge to apply the new standards.
If you outsource accounting services in Malaysia, you will not have to worry about implementing these changes yourself as professionals will handle them.
Examine the auditors’ list of work documents and schedules, clarifying any desired information as necessary.
Assign each task on the list to a dedicated individual and set a deadline for completion. Make sure you leave enough time to go through your schedule and make any required adjustments.
When feasible, start with the most difficult, complicated, or time-consuming sections. Generally, you should provide the drafts of the financial documents to the auditor early in the audit process.
4. Organize Data
Create a collection of audit protocols that the right employees can access in future years.
To make it simpler to organize and retrieve schedules, consider establishing subfolders for major accounting cycles or groups, such as income, sales, and receivables, costs and payables, assets, capital assets, loans, and so on.
After all year-end closing entries have been completed, examine schedules and work papers to confirm that amounts accord or reconcile with the trial balance.
Self-assessment is highly important to examine the overall health of your business. Moreover, you should get help from an audit firm in Malaysia to ensure the implementation of the best accounting and audit standards.
6. Ensure Availability
Avoid booking vacation time for important workers during the audit and reschedule or postpone non-critical meetings for finance and accounting professionals who are closely engaged with the audit.
Although the auditors will have requested most of the schedules and work papers prior to the commencement of audit fieldwork, be aware that the auditors will continue to require more material, like any supporting financial records during an audit.
7. Use Past Results
Examine any previous year’s audit modifications, internal management suggestions, or difficulties observed during previous audits. These may serve as a starting point for self-reflection to guarantee that similar problems do not arise again.
You can also discuss such issues with professionals from an audit firm in Malaysia to bring maximum improvement to your organization.
8. Result Evaluation
You should maintain regular communication with the auditors during an audit until the final audit report is issued.
If the auditor wants to schedule a meeting or attend a meeting of the board of directors, you should make sure that you offer all the relevant information to the auditors to prevent any delays.
In a Nutshell
These are some of the most important strategies that every company should implement to get through the audits in a reliable and efficient manner.
As a result, companies will not run into legal issues with the authorities and can function smoothly by fulfilling the audit requirements.