Transforming the Perception of Audits: From Overhead to Opportunity
Unfortunately, Audits are Often Viewed as an Unwelcome Overhead
Audits have long been perceived as a necessary evil—an overhead that businesses must endure rather than an opportunity to improve and grow. This negative perception stems from several key factors, including:
Lack of Business Understanding from the Audit Team
One of the main reasons audits are seen in a negative light is the lack of business understanding from the audit team. Traditionally, the pricing for audits has been very competitive, often resulting in auditors not being able to allocate enough experienced resources to the job. This budget constraint forces firms to use less experienced auditors, leading to an outcome that feels more like a tick-box exercise than a thorough and insightful evaluation.
When the audit team doesn’t fully understand the intricacies of a business, they miss critical insights and opportunities for improvement. Instead of providing valuable feedback, the audit becomes a mechanical process, disconnected from the real challenges and opportunities the business faces.
Lack of Useful Feedback and Output
Another significant issue is the lack of useful feedback and actionable insights at the end of the audit. Businesses expect more than just compliance confirmation; they seek meaningful recommendations that can help them improve their operations and strategy. However, due to the constraints mentioned above, many audits fail to deliver this level of value, leaving businesses with little more than a formal report that doesn’t contribute to their growth or efficiency.
Audits Can Add Significant Value to Your Business
However, this does not need to be the case. At Langricks, we believe that an audit should add significant value to the business. Our audit philosophy revolves around transforming the audit process into a strategic tool that enhances business performance and drives success.
Our Approach: Experienced Teams and Commercial Insight
To achieve this, we deploy experienced teams on our audit work. By doing so, we ensure that the audit is conducted by professionals who understand the nuances of your business and can provide meaningful insights. This approach helps us control the quality of questions, reducing the frustration that often comes with inexperienced auditors.
Our experienced auditors approach the audit in a commercial way, looking beyond the numbers to understand the broader business context. This enables us to identify opportunities for improvement, highlight risks, and provide practical recommendations that can make a real difference.
Delivering Actionable Feedback
At the end of our audits, we don’t just hand over a standard report. We provide comprehensive feedback that is tailored to your business’s unique circumstances. Our goal is to ensure that you have clear, actionable insights that can help you optimize your operations, enhance compliance, and drive growth.
Audit Limits are Set to Increase
In line with evolving business landscapes, audit thresholds are set to increase significantly. The new limits will be set at £15 million turnover, £7.5 million gross assets, and 50 employees. Additionally, micro entity thresholds will move from a turnover of not more than £632,000 to not more than £1 million. These changes reflect the growing complexity and scale of businesses today, underscoring the need for a robust and insightful audit process that can keep pace with these developments.
Audits don’t have to be a dreaded overhead. With the right approach, they can be a powerful tool for business improvement. At Langricks we are committed to transforming the audit experience, providing you with the expertise and insights you need to thrive. If you’re looking to turn your audit process into a valuable business asset, get in touch with us today. Let’s make your next audit a cornerstone of your business success.
