Financial transparency has become a crucial part in creating trust, maintaining shareholders’, as well as key stakeholders’ confidence, and securing the authenticity and reliability of the financial records. Achieving and ensuring the stability of financial transparency is not an easy objective, and is one of the most helpful and practical tools in your arsenal when it comes to auditing.

CONCEPT OF AUDITING

Auditing is a process in which an official inspection is carried out on a corporate entity’s financial statements by an independent body. Auditing is a very vital component in maintaining the accuracy and corroborating the reliability of financial data. It provides an assessment of your company’s financial health, internal environment and reveals whether or not your company is compliant with the relevant rules and regulations. Through the conduction of audits, the auditors can examine and highlight any potential problems such as fraud or errors in the financial statements. Hence leading to protection of authenticity and integrity of the financial books of your company.

REGULATORY FRAMEWORK

Before going any further in the world of auditing, it is important to know the relevant governing body that overlooks the auditing procedure in Pakistan. Pakistan has its own regulatory bodies which governs auditing practices and ensures compliancy and transparency. the framework for the accounting and financial reporting for all organisations in Pakistan are specified in the Companies Act 2017. In Pakistan, there are two types of regulating bodies, Auditor General of Pakistan (AGP) and the Institute of Chartered Accountants of Pakistan (ICAP) respectively. AGP is responsible for handling the accounting and auditing affairs of the public sector such as government institutions, while ICAP sets the accounting and auditing standard for private sectors and corporate organisations. ICAP follows the international auditing standard and sees to it that the companies in private sector are compliant with the given guideline.

KEY POINTS OF AUDITING FOR TRANSPARENCY

Auditing promotes transparency in a number of ways:

1. Affirmation of Financial documents

Auditors thoroughly examine and review the financial accounts and records such as income statement, cashflow statements, balance sheet of your company to solidify the validity of your firm’s financial position. This confirmation of validity is a very vital step in auditing in order to establish the credibility of your company’s financial statements.

2. Identification of Discrepancies

Here, the experienced auditor identifies any irregularities that could show up in your financial records. By recognizing these discrepancies quickly, auditing helps to rectify these errors and maintains the integrity as well as increasing the accuracy of your company’s financial statements.

3. Compliance orientated

In this step, the auditors analyze the financial statements in order to make certain that your company is compliant with the regulated authorities. This not only enhances your company’s reputation but also builds trust among stakeholders in your company. The other benefit that comes out of being compliant is that it promotes adherence to the law.

4. Guidance for improvement

Often after reviewing and examination, the auditor can help provide invaluable advice which can immensely help with your company’ shortcomings if any in the financial records. Their useful insight can help improve financial process, transparency and overall efficiency. As a result, your company can achieve optimal financial management.

ADVANTAGES OF AUDITING FOR FINANCIAL TRANSPARENCY

Let’s delve into the advantageous factors of auditing for financial transparency and how De RISC Consulting can help your company with your auditing needs.

1. Trust and Reliance

De RISC Consulting can help your company by guiding your business to follow the practice of having your financial statements verified by an experienced auditor, this will immensely help in creating trust and fostering good relationship with your stakeholders, shareholders and the public. Another plus side is that it attracts more investors once the trust has been solidified.

2. Risk Mitigation

With De RISC Consulting by your side, auditing allows companies to mitigate their risks according to the auditor’s report. By conducting audits, potential errors or problems become more prominent which allows your company to swiftly solve those predicaments before they can damage the company on a larger scale.

3. Compliant Assurance

One of the biggest benefits of being partnered up with De RISC Consulting would be that the company with its team of expert level auditors will make certain that it verifies your company’s compliance to the laws of the relevant regulated authority. This also reduces the risk of being penalized and further minimizes legal issues for your company.

CONCLUSION

In today’s corporate world, it has become essential to pursue financial transparency to mitigate positive communication with your investors and important stakeholders. This driven approach of achieving credibility and integrity of your financial statements can help your company achieve its goals in the long term. By entering into an agreement with De RISC consulting for auditing services, you certify the protection of your company’s image and will also be able to establish a very trusting environment leading to increased transparency in the business world.