benefits of having an audit?

Question

a comapny making a turnover of £5.6m must have an audit. A company that doesnt does not have to have one. But what are the beneifts of having an audit?

Answer 1

Potential benefits of an audit:

*Objective assessment of areas of interest to the Board of Directors and management.
*Confirmation that controls and procedures are satisfactory.
*Identification of deviations from Board policies or management's standards and expectations.
*Identification of controls that need improvement.
*Recognized improvements to accounting controls to prevent and detect problems.
*Ideas to eliminate redundant or burdensome controls.
*Identification of productivity enhancements.
*Recognized opportunities to automate procedures.
*Confidence in the use or design of electronic data processing systems.
*Confidence in personal computer applications.
*Recoveries of unbilled or underbilled revenues.
*Recoveries of contractor overcharges.
*Early detection of problems before they come to the attention of others.

Answer 2

It to make sure that the buisness is being run correctly and legally.