So, what exactly is an audit? In short, an audit is a comprehensive examination of a company’s financial statements and business operations. An independent third party conducts it – usually a certified public accountant (CPA) – to assess the accuracy of the company’s financial reports and ensure that they comply with applicable laws and regulations.
An audit can help businesses identify potential financial risks and weaknesses and improve their overall accounting procedures. It also reassures shareholders and investors that the company auditing services is being run responsibly and following accepted accounting standards.
When choosing a CPA for your audit, there are a few things you’ll want to keep in mind. First, make sure the CPA has the right credentials to handle your business’s specific needs. It’s also important to ensure that they actually understand your company and its particular goals, rather than simply passing a general knowledge test in order to be allowed to conduct audits.
In other words, when hiring a CPA for an audit, it’s generally best if you choose someone who knows about your industry or type of business. For example, if you own a bakery, don’t hire a CPA from a big accounting firm in downtown Seattle just because they advertise that they do audits – find somebody who understands the food industry and can draw on past experiences when needed. You’ll have to pay more for an experienced professional with industry-specific knowledge, but that extra expense is definitely worthwhile.
Lastly, make sure your CPA actually wants to work for your Athenasia company before you hire him or her. Many people who are new to the industry think that doing audits is merely a stepping stone on the way to bigger and better things – CPAs want to be CEOs of their CPA firms one day, not corporate drones working on little-known businesses financial statements.