Role and advantage of Voluntary Audit
Although not prescribed by law, voluntary audits can contribute to the success of your company. The scope of information your stakeholders require has significantly changed both in quantitative and qualitative terms. We ensure that you meet your company reporting requirements.
Moreover, recently with more and more companies falling out the audit regime following the increase in the legal audit exemption thresholds. Under the recent environment, Voluntary Audit enables to provide an independent assessment of your financial statements, management and internal controls over financial reporting.
Improves internal systems and controls
Independent Auditors do not just focus on the numbers of financial statements but will gain an understanding of the businesses, overall systems and controls environment.
This will enable them to identify deficiencies in the accounting systems or internal controls for which recommendations can be made, making your business more efficient and less prone to fraud or error. Thus, through working with voluntary audits, you can improve risk management and increase the effectiveness, efficiency and ultimately the profitability of your business.
Gives shareholders confidence
Most small and mid-seized business are mangaged by a small board of directors on behalf of the shareholders who can be remote and have little involvement in the day to day operations.
An independent review of the financial statements can provide transparency to the shareholders that the company is being run within their best interests and can highlight any issues that have occurred which may not have been brought to their attention.
Who should use Voluntary Audit
In some cases, Voluntary Audit is used when a subsidiary of a listed company is made to undergo auditing by the parent company, or a company planning to go public in the near future is made to undergo prior auditing by its stockholders in preparation.
In other cases, an overseas company may also use this voluntary auditing service as part of measures to bolster the system for checking its subsidiary in Japan in terms of the preparation of financial statements and internal control system over financial reporting.
Furthermore, it is suitable for the company who considers selling the business or are looking for further investments.