The audit is evolving into a strategic opportunity that can help guide and inform future business decisions.
What would push you to spend more for an audit? What if there was a clear link between capitalizing on audit insights and company growth?
A recent survey of C-suite executives and audit committee members shows that business leaders of companies who capitalize on information received from the audit indicate stronger growth than those that do so rarely or never. Nearly all respondents said they would spend more for an audit that provides business insights. But even though most of the business leaders surveyed recognize the value today’s audits can deliver, many companies are missing out on the opportunity to put those valuable insights to good use.
The survey explored the value of financial statement audits and how businesses can improve by leveraging audit insights such as: comments about the industry and market; comments on company processes and policies; and identification of company inefficiencies, redundancies and risks.
An example provided by Deloitte is a large hospital where data visualization is used to evaluate the Property, Plant & Equipment balance down to the location, asset, and transaction levels. This enabled the audit team to pinpoint its risk assessments more specifically and provide management insights regarding the depreciation and in-service date analyses.
Adam Weissenberg, national managing partner, audit clients and industries, Deloitte & Touche LLP says, “Smart companies recognize audit’s value beyond its foundational role of enhancing trust and confidence in the capital markets. Audits help business leaders glean insights that can help improve performance and operational processes of their companies. For example, audits can deliver information about market or industry trends, identify inefficiencies or risks, or inform company practices. Specific indicators include strategic insights to inform how to grow business, measure company performance beyond sales, spending patterns, and assessments on management structure operations.”•