Do you know your business’ audit obligations?
Audits are an assessment of your business’s annual accounts which is carried out by an independent person or body or firm of accountants whom are accredited auditors. It is basically a financial health check for your company. It is important for your business that this auditing is carried out, as it can be used to evaluate your business’ accounting practices as well as the value of your company. It also ensures that your business records and operations are in accordance with commercial laws, regulations and government directions.
Most types of audits deal with tax and accounting related issues. Companies such as charities, real estate agents and clubs must complete audits as they are required by the government. If these audits are not completed or not carried out correctly, for example records are not kept in specific details, there can be many penalties involved. For example in workers compensation audits, if records are not kept of payments or in enough detail, the penalty is up to $55,000. There are many types of audits and it is important to know which type of audit is suitable for your type of business. These include:
- Club Audits
- Company Audits
- Due Diligence Audits
- Intellectual Property Due Diligence Audits
- Marketing Funds Audits
- Not For Profit Audits
- Payroll Tax Audits
- Shopping Centre Audits
- Superannuation Fund Audits
- Tax Audits
- Trust Account Audits
- Workers Compensation Audits
To prepare for an audit, it is important to asses all relevant records, tax returns and activity statements. If you do find a mistake in any of your records it is important to notify the ATO (Australian Taxation Office) immediately to reduce the level of penalties. It is important to keep all of your company’s records up to date in order to avoid panic and frustration as well as a mountain of paperwork to deal with, should you be required to have an audit carried out on your business.
Audits can also be valuable to your company as it can improve the integrity of your business as well as providing your company with an in-depth look into your business operations which can be used to further develop the accounting and financial practices of your enterprise.
The Quinn Group is an integrated professional services firm of both accounting and legal services. Our experienced team can carry out your audit in a cost effective way and minimise the amount of time and stress involved. If you would like more information on auditing, or to arrange for us to assist with auditing your business, please contact us on call 1300 QUINNS (784 667) or +61 2 9223 9166 or submit an online enquiry.