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EXTERNAL AUDIT

What is an External Audit?

An external audit is an independent examination of the financial statements prepared by the organisation. External auditors play a critical role in validating your company's finances. Potential lenders and investors often require externally audited financial statements before extending credit or providing funds for your business.

External audit firms are responsible for providing reasonable assurance that the financial statements are free from material misstatements and prepared according to an accounting framework.

What are the benefits of an External Audit?

Investor or Lender Confidence

An independent review of the financial statements can provide transparency to the shareholders that the company is being run within their best interests in mind, this gives investors peace of mind and confidence.

Robust Internal Controls

External auditors thoroughly review your company’s entire range of transaction processes. They perform walk-throughs of each of your business processes and verify that approvals and authority checks are in place and working before a transaction lands in your financial records. The external auditor will also advise you on how to address these issues leading to strong internal controls.

Provides Credibility to Financial Statements

Having your financial statements verified by an external auditor can give more credibility to you business than those that have not. If you are seeking to raise finance or sell your business in the future, providing audited accounts gives security that your accounts are free from material error or malpractice, making you more likely to be successful in achieving your goals.

Identification of errors

As a business owner, even if you have the expertise to conduct your own audits, the responsibilities of running a business may prevent you from dedicating the time required to seek out errors and omissions in your financial records. An external audit will identify these mistakes and rectify them over the historical data. This, in turn, will provide you with clearer business records and data.

How it works.

At KAN Global, our professionals will work with you to plan and design financial statement audit engagements. This process is designed to minimise disruptions to your personnel and operations, while still adhering to professional standards. Here is a brief overview of our process.

1

Understanding the client profile

Before we commence the assignment, we thoroughly understand the key requirements of the client for a particular audit assignment. This helps us to lay down the key objectives of an audit assignment and serves as a framework for the particular audit assignment.

2

Identification of risks & weak controls

We pinpoint the areas where the internal check and control systems are weak and come up with valuable inputs as to how to address the weaknesses and improve controls.

3

Analysing & testing internal controls

Make sure internal controls are in robust shape and verify information in books of accounts.

Performing tests of controls to verify whether controls are working as designed.

4

Coming up with recommendations

From the information we collected during our assessment, we then focus on rectifying any problem areas

5

Drafting detailed final report

Providing observations and recommendations to improve processes and controls and providing insight on how to effectively implement these recommendations

6

Ensuring you are on the right track

Lastly, we do not leave you hanging! We will perform a follow-up review to verify the changes made have been implemented successfully.