Traditional view about auditors of financial statements usually refer to statuary requirement. Like, usually large scale multinational groups or corporate houses hire external right financial auditors for audit of financial statements. It is due to the fact that legal laws and legislation regarding corporate statues of every state imposes restriction on companies to get their financial statements audited. On other hand, some small and medium size companies also get their accounts audited if they have to make borrowings from banks and financial institutions. However, attention should be given that apart from a legal requirement, audit of financial statements can fetch number of rapturous factors for companies. For example, streamlining of accounting data, true and accurate picture about company’s operation, monitoring and review of internal control policies and procedures, revamping of work flow due to highlighting of deficiencies of accounting system and internal control through audit etc. That is why even for those entities for which there is no statuary requirement of obtaining audited financial statements also get their accounts audited by qualified and experienced accounting firms.
Here sometimes people confuse financial statement auditors Sydney with internal auditors. Attention should be given that there is a hell of difference between internal auditors and financial statement auditors.
Internal auditors are responsible for management of internal control policies and procedures. They do not form an opinion on financial statements of a company as an independent auditor. Instead, they act as an employee of the company. Whereas external auditors publish their independent audit report for members and shareholders of a company which enhance understating of shareholders and all stakeholders of a company. That is why services of financial statements auditors are always highly admired by everyone. So, it can now be constructed that services of independent auditors are very important and even value addition for a business. However, major thing which should be cogitated is that only competent and recognised accounting firms should be hired. This is because it is an extremely complex and specialist task which should be done by competent and adroit professional.
For this purpose, one can also consider an ultra-modern way of hiring service providers called ‘e-hiring’. As mentioned above it is very necessary to ascertain the competence and industry specific experience of auditors. However, this medium offers best opportunity to corporate clients to evaluate industry specific experience of accounting firms. Moreover, in this way one can also save its time and effort and most importantly, online medium is always famous for striking most effective deals very easily. Business analysts usually say, “Audit and assurance services always detect significant risk of material misstate either due to fraud or error” and resultantly, overall accounting record, operational flow and deficiency in internal control would be mitigated.