Smart leaders never act as if they knew everything. They know that they do not know everything. Therefore, they rely on other people to make their tasks easier. Those people may include external accountants, consultants, or external auditors. Those people can help the leaders in doing business audits for the internal process and developing strategies to meet the organization’s objectives.
Regardless of the enterprise size, independent review of your business process is very important. Valuation by external consultants is unbiased, thus providing you with the real picture of the process. Imagine when the valuation is done by internal auditors in your company. It must be very uncomfortable for your staff to question about your policies. The case is different when the audit is done by external consultants.
Why You Need Third-Party Experts for Business Audits
In fact, many enterprises still have the business audits done by internal auditors or consultants. However, there are certain types of audit, which are better done by professionals from a third party. They are as follows:
Financial Statement and Accounting
As mentioned above, having a third party review your financial statements is a good decision. You may have a qualified financial team and you trust them very much. However, a third-party evaluation is unbiased. The team can check minor errors in the practices, which may not be realized by the internal team. In addition, external auditors can help you identify possible internal abuses, which involve the employees.
Properly reviewed financial statements are important in many ways. For instance, you will require them when raising capital for your businesses or when dealing with investors. In these cases, the audit must be done by an independent agency. The external auditors can provide you with complex guidelines in anticipating changes, which may influence your business.
Most of businesses now depend upon cloud-based systems to run the businesses. Digital media, social media marketing, cloud-based storage, online marketing systems, and other Internet of Things (IoT) are some of the examples. The problem is cybersecurity threats also increase with time.
The problem is that many companies do not realize their true vulnerability. They realize if only after they become the victims of hacking attacks or data loss due to malicious attacks. In fact, few companies are able to audit the cybersecurity vulnerability. Likewise, few auditing agencies can do it. Therefore, having a specialized cybersecurity auditing agency do the task is a good decision. The auditors can take a holistic look at your network, IT process, and potential threats.
If you have third-party vendors, their performance may also affect yours. For instance, when the third-party vendors have vulnerable networks, they may affect your networks. The best partners to do the audit process in the third-party vendors are of course external auditors.
The point is that you cannot control anyone around you. However, you can take preventive steps by controlling whom you do business with. External auditors help your business in many ways. Business audits related to accounting process, financial statements, cybersecurity, and vendors are better conducted by external auditors.