The use of audit reports

Audit reports play an important part for organizations, Sayub & co. is an auditing firm in Karachi offering its services. Big organizations which have business spread across many different areas, would have employed a number of staff, functions, office locations or technical systems. The managers of the organizations that are employed that are not personally and solely operating, the transactions and the activities of the business are controlled by  many managers which leads to the risk of errors or irregularities occurring in the organization. This is why like an organization maintains and checks the quality it offers it also desirable to check and deter fraud within the organization by carrying out a regular audit.

The audit will help to identify weaknesses in the accounting systems of the organization, and it enables the management to suggest improvements. The process of auditing keeps management informed of areas/situations where advice is useful and the change is needed. The auditor assures directors are not involved in the accounting functions of the organization on a day-to-day basis that the organization transactions are running in accordance with the information it is receiving, this helps reduce the scope for fraud and poor accounting, and hence securing the stakeholder value. Moreover, the audit will facilitate with the provision of advice that can have real financial benefits for an organization, including how the organization is running, what margins, goal, and strategies can be set expected and how these can be achieved. Advice can cover anything from the tightening of internal controls, to reducing the risk of fraud or tax planning.

The audit report is not only important because it is a requirement by the Securities Exchange Commission of Pakistan, the audit report will enhance the credibility and reliability of the figures being submitted to prospective purchasers of the organization. If an owner or manager is planning on selling in the future over the years, it may be beneficial to carry out regular audits to increase the reliability.

Obtaining the audit report may also be advantageous if the size is growing of the organization and likely to exceed the turnover in the near future, in order to avoid having to revisit the previous years’ figures, once the threshold has been reached, and most importantly the audit report adds credibility to published information for employees, customers, suppliers, investors and tax authorities. So for your audit reports in Pakistan, contact Sayub & co. a trusted auditing firm in Pakistan.