What can you expect during an audit?

Companies undergoing an audit for the first time often wonder what the process involves and what they can expect when working with an audit team. Although the details vary depending on the type and scope of the engagement, the audit process generally follows several key stages.

An audit begins with planning and gaining an understanding of the company’s business. The auditors review the company’s activities, assess key risks, and identify areas that require particular attention during the audit.

The next stage involves reviewing financial information, business processes, and internal controls. The audit team performs various procedures to obtain sufficient evidence on which to base its audit opinion. These procedures may include:

• reviewing documents;
• speaking with the relevant employees and members of management; and
• testing specific business processes.

During the audit, the auditors may request additional documents or explanations. This is a normal part of the process and does not necessarily mean that there are issues with the company’s operations. The purpose is to ensure that the auditors have enough information to form their audit opinion.

At the end of the engagement, the auditor issues an opinion on the financial statements. However, the value of an audit goes beyond the audit opinion itself. Organisations often also receive useful recommendations on how to improve their financial reporting, internal controls, and risk management.

A well-conducted audit helps organisations increase business transparency, strengthen stakeholder confidence, and prepare more effectively for future challenges.

Not sure whether your organisation is ready for its upcoming audit? Speaking with an experienced audit team can help you identify potential challenges early and ensure a more efficient and transparent audit process.

Find out how Forvis Mazars can help you.

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