Why are financial audits important for your company?

In this blog, Suné Alexander talks about the importance of financial audits and why you should choose MJ Chartered Accountants as your auditor

In simple terms, financial auditing is the process of examining a company’s financial records to determine if they are accurate and in accordance with the applicable accounting standards (IFRS or IFRS for SME’s) and ensuring that the company complies with applicable tax laws and regulations.

How do you know if your company’s financials must get audited?

The Companies Act requires public companies and state owned companies to have an audit. For other companies, depending on your Public Interest Score (PIS), your financials might have to be independently reviewed or audited. In addition to the PIS, whether or not your annual financial statements are prepared internally or independently will also have an impact on the type of assurance engagement required. (for more info on this, please refer to the June-July 2022 issue of the Crest, article: “To audit or not?”) or email sune@mjacc.co.za.

Why are audits important?

An audit will provide the highest level of assurance that your company’s financials are reliable and trustworthy.

In today’s fast-paced environment, decision makers need timely, reliable information from a trusted advisor. You need to be aware of your business risks and know that they are managed effectively. You need to have faith in your systems, controls, financial records and that you are compliant with key legal requirements. You need to be able to instil that same confidence in your shareholders, investors and customers.  

The world at large requires accountability. Directors must be held accountable for the way in which they run their businesses, the government must be held accountable for the way it spends taxpayers’ money, and companies whose activities affect the environment must be held accountable for the way in which they adhere to environmental regulation and legislation. This is where auditors come in, to provide an independent service which assesses and evaluates whether the accountable parties are meeting their responsibilities.

Why choose MJ Chartered Accountants as your auditor?

  • We want your business to be the best it can be – our commitment is to provide you with significant levels of partner input while building lasting relationships with you and your company.
  • Our services are efficient, cost-effective and comprehensive.
  • We like to keep things clear and concise and we like straightforward communication, to ensure stakeholders get results they can trust and understand.
  • Our clients range from small owner-managed businesses, partnerships and charities to medium-sized businesses.

MJ Chartered Accountants are Registered Auditors and are able to assist with your audit, independent review and compilation engagements. 

Our offer to you

A free calculation of your public interest score to determine the level of assurance you are legally required to obtain, which could save you money, time and effort.

For more information contact us on:

sune@mjacc.co.za or melissa@mjacc.co.za | 087 821 7110 | www.mjacc.co.za