Auditing is one of the most essential duties in a business’ financial department. Naturally and by instinct, this is something that you might like to keep internal and within the company. To have an external auditor do such a crucial job may sound completely ridiculous.
But before you dismiss the idea of hiring a third-party company to do your company’s audits, read on. You may be surprised to learn that there are more benefits to this than you have ever imagined.
Benefits of Hiring an External Auditor
- Provides unbiased audits and helps ensure that your company complies with IRS guidelines at all times. A third-party auditor does everything an in-house auditor can do, but with one difference: the former sees through things with a detached perspective while the latter has a sense of emotional and professional attachment to the company. It may seem like a small thing but when it comes to big projects, big problems, and crucial moves (e.g. errors in taxation and IRS complexities), an external auditor can see the problems and create solutions that are unbiased and without fear of offending anyone in your company. There will not be a risk of your audit results being defensive or being anything less than a useful tool that shows everything there is to show. They will see the problem as is and not as the work of a friend in the marketing department.
- Earns you more credibility. Whether you need auditing for investment, presentations, or IRS purposes, an external audit result will be deemed more credible than an internal one mainly because of one thing: lack of bias. When people know that someone not directly linked with your company created your audit report, you are giving them a sense of truthfulness and transparency. This, in essence, is making your company look like you have nothing to hide from anyone as far as your finances go.
- Reviews your internal processes. Sometimes, it takes another person a look at your house to know which parts you have not cleaned well enough. Similarly, a third-party company can tell you things about your auditing and financial departments that your own team may have missed, due to familiarity. New eyes and new perspectives, and especially keen and expert eyes, can see through loopholes that are easy to miss, even by your most trusted in-house auditor.
- External auditors typically have more, and broader, experience, specific to auditing. Your in-house auditor is probably good and reliable, but there is something valuable about the experience and expertise gained by third-party auditors who have worked with a wide variety of companies. Every company has different problems and issues that arise in an audit. Working with someone with a wide range of audit experiences can help you respond more efficiently to unique and difficult situations — situations that your internal auditor likely has yet to experience.
- They can train your internal audit staff. Because of their wider, more extensive professional experience, your company may choose to hire an external auditor for consultancy and training purposes. With their training, your in-house staff will be better prepared for unique situations that may arise in the future, and be able to respond more accurately and efficiently.
Interested in external auditing services? In San Diego, the external auditor company to trust is Class Advisors! Our experts have over 40 years combined experience and unparalleled expertise – they can provide you with auditing solutions you cannot get elsewhere. Call Class Advisors today at (619) 282-7126 to speak with one of our experts!