Financial Audit

Financial auditing refers to the process of examining an organization’s financial statements in order to ensure that they are a true and accurate representation of a company’s financial position. Simply put, audits are meant to confirm that the information you provide to the public and your organization’s stakeholders is correct. A financial audit is conducted for several reasons including; compliance, taxation, disclosure, legal and others.

Internal audits: These are conducted within an organization at the behest of top management. They are conducted to ensure that an organization is meeting its own high standards with regard to risk management, internal control, and overall governance. Conducted by an organization’s own internal auditors, internal audits reveal gaps in reporting, compliance, risk management, and controls. They help management improve processes to ensure greater efficiency, ascertain that organizations comply with local laws and regulations and help to prevent fraud and poor use of organizational resources.

External audits: External audits are conducted by external accountants or auditors and are intended to confirm the accuracy of the financial statements provided by an organization. An external audit also helps to determine whether an organization’s records have been prepared in accordance with local rules and regulations in addition to  International Financial Reporting Standards (IFRS). Finally, external audits help investors, shareholders, lenders and other stakeholders determine whether an organization’s financial statements present a true picture of its financial position.

Third-party audits: A third-party audit is conducted by an independent body to determine compliance with certain standards e.g. ISO9011.

Internal audits are essential for assessing how well processes, operations, and controls are working for your organization. However, internal audits tend to be biased, especially if your internal auditors want to avoid your wrath. As a result, internal audit findings might not present a true and accurate picture of the situation on the grou

Internal audits are essential for assessing how well processes, operations, and controls are working for your organization. However, internal audits tend to be biased, especially if your internal auditors want to avoid your wrath. As a result, internal audit findings might not present a true and accurate picture of the situation on the ground. This is where an external financial auditor comes in.

In addition to ensuring that your financial statements present a true picture of your financial position, an external auditing service will help your organization in the following ways;

1. Increased credibility: Your financial statements will be seen to be more credible if they have been vetted by a reputable external auditor. This is because stakeholders are more likely to view your financial information more positively if it has been verified by an individual or organization with no direct links to your company.
2. Improved processes: Most external auditors bring a wealth of knowledge and experience to each project. This is especially true if they have worked on multiple projects in varied industries and are thus able to identify problems and challenges that they have experienced in organizations similar to yours. External auditors can also provide a new and different perspective and point out problems that your internal audit team may have missed. Finally, they can provide tried and tested solutions to help improve and streamline your operations and processes.
3. Compliance: External auditors can help you identify areas where your compliance efforts are falling short. In addition, they can let you know whether your reporting standards comply with local regulations and international standards and help you avoid penalties for non-compliance.
4. nd. This is where an external financial auditor comes in. in addition to ensuring that your financial statements present a true picture of your financial position, an external auditing service will help your organization in the following ways;
5. Increased credibility: Your financial statements will be seen to be more credible if they have been vetted by a reputable external auditor. This is because stakeholders are more likely to view your financial information more positively if it has been verified by an individual or organization with no direct links to your company.
6. Improved processes: Most external auditors bring a wealth of knowledge and experience to each project. This is especially true if they have worked on multiple projects in varied industries and are thus able to identify problems and challenges that they have experienced in organizations similar to yours. External auditors can also provide a new and different perspective and point out problems that your internal audit team may have missed. Finally, they can provide tried and tested solutions to help improve and streamline your operations and processes.
7. Compliance: External auditors can help you identify areas where your compliance efforts are falling short. In addition, they can let you know whether your reporting standards comply with local regulations and international standards and help you avoid penalties for non-compliance.

• Financial statement analysis: Bon and Drew’s team carries out a thorough review and analysis of your financial statements to determine the accuracy of your financial records as well as compliance with local and international reporting standards. We also review your financial management system including; accounting policies, cash management procedures, information systems, and others. 
• Internal control review: We review your internal control processes including; authorizations for spending and purchasing, cash management policies and asset management. We do this in order to identify any weaknesses and provide solutions to help you avoid fraud and other problems later on.
• Performing audits of non-financial areas such as IT and health and safety.
• Assessing your organization’s risk management policy to determine efficiency.
• Reporting any fraud indicators that we discover.
• Compiling an audit report, sharing our findings and recommending solutions to the problems we discover.
• Providing you with formal opinions based on our findings.

All our financial audit activities are geared towards ensuring your financial records are accurate, helping you comply with rules set by regulatory bodies and ultimately, ensuring efficient operation of your organization.