Financial statements of a company not only establishes its credentials among multiple stakeholders but is also required to be maintained due to compliance requirements. Financial statements play a vital role in attracting investors too. auditor is required to scrutinize the veracity of your financial statements. The auditor could also conduct non-statutory audits to ensure that your organization follows best-in class practices.
A Top Audit firm in India would offer the following benefits:
Savings in terms of time and cost:
Companies often look to hire a local firm or a less reputed firm as against a top audit firm in India to save cost. On the contrary, hiring a top firm can result in both savings in terms of time and cost for a company. A top audit firm would be able to provide auditing services as well as guide the company regarding their accounting policy and how to frame them. The company can rely on the audit firm and may not need to hire a full team to work on auditing as well as accounting. Apart from savings in cost in the above scenario, top audit firms usually have a large team and would be able to issue audit reports sooner as compared to a smaller firm.
Reduction in complexity
A company might be subject to various laws and preparation of the financial statement as well as setup of the financial system is to be done considering various laws. A top audit firm in India would be able to guide the company to reduce the complexity between various laws as well as increase the interplay of how the system interacts to ensure compliance with all laws. Auditors are often consulted before preparation of financial systems and a top audit firm would be able to provide better guidance.
Compliance with Law:
A company has to comply with a variety of regulations and compliances. A top audit firm in India would enable a company to do this. Apart from shareholders, tax authorities are among the consumers of the financial statements of any company. In many circumstances, one law might be differing from the other in terms of the treatment of particular items. A top audit firm in India would be able to incorporate the differences and present them in an easy-to-understand manner to ensure compliance with the law and reduce the chances of any legal notices.
Better Internal Control System:
The preparation of the financial statement is the responsibility of the company and an auditor merely checks the authenticity of the prepared books. Large companies often possess their internal control system to reduce frauds and ensure a maker and checker concept. Through the audit, a check on the internal control system can be kept by the company. The auditor can identify loopholes or weaknesses in the internal control system enabling the company to plug the loopholes or strengthen its policies. A better internal control system will allow the company to prepare financial statements more efficiently and reduce the chances of any wrongdoing.
Increase in authenticity:
The financial statement of a company is relied upon by many stakeholders of the company. Apart from the shareholders, who rely upon the company for wealth creation, stakeholders like the creditors, lenders as well as government rely upon the prepared financial statement for various purposes. The lenders may provide finance to the company based on their financial performance as stated in the financial statements. Financial statements audited by the Top CA firm in India would lend more authenticity to the financial statement and allow the lenders or other stakeholders to place more reliance upon the issued statements.
In a company form of organization, the owners, the managers as well as outsiders are all different parties. In the above circumstances, the financial statements that link all the stakeholders need to be of high quality to allow reliance upon them by the concerned authorities. A top CA firm in India would allow the concerned stakeholders to be sure of its quality and ensure that the company has complied with the provisions as required by the law.