Skip to content 
Auditing: A Gateway to Growth
In the world of business, the term ‘audit’ often summons trepidation, perhaps due to its association with scrutiny, legal compliance, and bureaucracy. At DeFreitas & Minsky LLP, a certified public accounting firm located in New York, we view audits as crucial tools for business growth and development. Rather than viewing them as exigencies, we recommend considering them as opportunities to drive your business forward. The focus keyword is “growth through auditing”, and the forthcoming content aims to shed light on how strategic auditing can indeed serve as a gateway to business growth.
Unlocking the Power of Auditing for Growth
The traditional understanding of an audit limits it to being a statutory obligation required by regulatory authorities rather than a strategic decision intended for company’s growth and development. But why limit audits to merely a compliance certificate when it can furnish insights you might otherwise overlook? By leveraging auditing processes, businesses can uncover their hitherto unknown strengths and weaknesses, allowing them to map out a more profitable course ahead.
According to a 2018 survey by Deloitte, 85% of the 1,600 CFOs surveyed agreed that internal audits offer substantial benefits besides fulfilling legal obligations1. These benefits are manifold; from enhancing financial management, improving operational efficiency, managing risks, ensuring compliance, to ultimately driving growth.
Enhancing Financial Management
At the heart of every successful organization lies robust financial management. A well-conducted audit aids in maintaining accurate financial records by identifying discrepancies, preventing fraudulent activities, and ensuring that accounting procedures align with regulatory standards.
According to the Association of Certified Fraud Examiners, businesses lose an average of 5% of their revenue annually due to fraud2. Through implementing regular audits, companies can identify and address fraud risk areas, minimizing potential losses and bolstering the bottom line.
Driving Operational Efficiency
Apart from ensuring sound financial management, audits can help businesses work more efficiently. A comprehensive audit examines the operational procedures, analyzing whether these processes are being executed optimally and align with the organization’s objectives. An external audit can highlight inefficiencies and redundancies in operations that you aren’t aware of as it provides an objective view of the procedures from an external perspective.
The Critical Role of Risk Management
An often-understated benefit of auditing pertains to risk management. Identifying potential risks and devising strategies to mitigate them is a key aspect of business growth. Audits can identify business risks and assess the effectiveness of existing risk management practices. PwC’s 20th CEO Survey reported that 65% of the CEO’s surveyed believed that their risk management capabilities needed to be strengthened3. Having regular audits can reassure stakeholders about your company’s risk management strategies.
Aligning Compliance and Boosting Reputation
At DeFreitas & Minsky LLP, we strongly believe in compliance not just as a statutory obligation but as a means of establishing a company’s credibility. A comprehensive audit goes a long way in winning the trust of stakeholders, potential investors and financial institutions alike.
Growth through Auditing: Conclusion
So, what is the way forward? As your business grows, adaptation must follow – embracing auditing as a tool to aid your strategy could be this vital adaptation. The narrative surrounding audits needs to shift from being seen as stringent scrutiny to an opportunity for self-evaluation, introspection and growth. We at DeFreitas & Minsky LLP, advocate this new approach to auditing — as a tool for business growth and continual improvement. Through diligent analysis, and consistent checks, audits can allow businesses to stay one step ahead — paving the way for sustainable and substantial growth.
Experience growth through auditing with DeFreitas & Minsky LLP, going beyond the routine to provide a myriad of accounting solutions tailored to your business needs.
