The 3 Different Types of Consulting Services that Audit Firms Provide
The term audit may perhaps send fear to a business owner, but it is actually one of the best processes that can ever be done in a business. In fact, it should be done on a regular basis to ensure that everything is in order.
Although businesses can conduct internal audits, audits, in general, are only conducted by an independent third-party firm.
Nowadays, auditing is usually done by accounting firms. You could certainly find some auditing services in Malaysia if you look closely.
Today, I am going to talk about the different types of consulting services that are usually provided by such firms.
There are certain risks that owners do not want to take. Some of these include financial loopholes, fraud, poor management within the organization, and security breaches, especially within the company’s systems.
Risk management is just a fancy term that helps minimize these risks as much as possible and it is offered by external auditing firms as well. They provide consultation services to different companies to address these areas.
For example, if the company owner wants to conduct a management audit, it will help detect key problem areas within the organization, which may include the managers, owners, and employees within the system.
Typically, owners and managers can get their hands full by conducting normal business operations and because of that, they may lose sight of everything that is happening within the organization.
Furthermore, managers may most likely be preoccupied with details that might give them headaches, which will lead to company pitfalls that will require immediate attention.
In the case of IT risk assessment, the audit firm may look for any possibility and likelihood for system hacks and other security breaches.
With regards to the company’s accounting system, they may detect certain loopholes that can be taken advantage of by unethical employees.
When every risk is assessed by the auditing firm, they can devise certain plans that will help mitigate and solve problems within these areas.
Auditing firms can also provide consultation services pertaining to the financial aspect of any business. They will analyze current financial results and compare it with historical data to determine if the company is doing well or not. If the latter is the case, then they will provide the organization with their insights and they will help come up with a plan that will help them stay afloat.
Aside from that, external auditors may also look into the company’s accounting policies and controls, review cash management procedures, assess relationships with creditors, and examine some trial balance accounts.
When the company needs their help, the firm may provide oversight that will either conduct a complete overhaul of the internal accounting system if need be.
Strategy and Operations
The goal of every business is to gain some profit and the only way for them to do that would be to minimize operational costs while maximizing company income considerably at the same time.
Auditing firms usually consist of different accountants that specialize in different fields. For instance, one team might handle clients that are in the manufacturing industry. Another team might handle HR operations, among many others.