Auditing the present with an eye on your future We offer your company a straightforward, jargon-free, auditing and compliance service. At Avid Partners – Business and Financial Advisers, we realise we are not auditing just you in isolation but are reviewing, auditing and managing your operations in the context in which you do business. Put simply, we get to know you and your business and accounting is just the first step before offering solid insights and analysis as your business moves to the next level. We identify many of the potential business risks which, if not managed effectively, could translate into financial statement risks. We concentrate our efforts on those areas that are critical to your business. This gives both the management and shareholders added peace of mind that the audit is clearly focused on the key business issues. We‘re different – here’s why
- Business risks – our audit allows us to assess how clients are managing many of the key risks in your business.
- Ongoing improvement ideas – our focus on processes allows us to assess how the business is performing against its own key indicators and also against industry leaders.
- Our team works with senior management to identify, measure and compare core business processes, how they operate and ways to improve them.
You know and so do we, that…
- By focusing only on the financial statement audit, much of the value is lost.
- By broadening our perspective we can add the value which clients have long been seeking.
- In time by adding industry skills and professionals from other disciplines to our auditor / audit team we will be capable of offering new and deeper insight into a business.
- Auditors have access to a tremendous amount of financial and non-financial information about a business.
Our 5 step approach will give you a real edge Five elements underpin our approach. Each adds new insights whilst, at the same time, risk issues and improvement ideas are identified throughout the process:
(1) Strategic Analysis
(2) Business Process Analysis
(3) Risk Assessment
(4) Business Measurement
(5) Continuous Improvement
(1) Strategic Analysis Our audit service team works with you to identify and understand critical elements of the business and the environment, including competition, technology, economic conditions, legislation, and industry issues. Our clients are asked to define their business strategy, products and services, customers, industry issues and what they must do to be more successful. The goal in performing strategic analysis is to take an overall look at the client’s organization and to help the client address business objectives and drivers at a more strategic level than was typical in the traditional audit. Strategic analysis draws on the information the client uses to operate and manage its business. It also focuses on the relationships between business processes, risks and controls.
(2) Business Process Analysis With an understanding of the business strategies, our team develops an in-depth understanding of the business processes supporting your strategy. Performing process analysis is done for two reasons:
(1) To obtain a more detailed understanding of how the business really operates
(2) To determine what criteria or measurements the client uses to gauge its performance against its objectives.
Questions posed to the client that help our team meet these goals include:
- “What are your key business activities?”
- “What are your business risks and how are their processes controlled?”
- “How do you measure performance?”
(3) Risk Assessment Interwoven through the first two principles is the concept of risk assessment, which provides a structure for analysing risk. Risk is defined as something that ‘threatens the achievement of an organisation’s objectives.’ Through discussions with management, the team is informed of the client’s methods of dealing with the identified risks and helps the client assess whether the risks are being adequately addressed and controlled. This assessment provides the basis for developing the audit strategy and plan.
(4) Business Measurement At this stage, the audit is completed. Additional audit evidence is obtained to form the basis for an opinion on the financial statements. The team focuses on the processes and variables that have the greatest impact on the financial results. These processes could consist of product, customer service, image or credit delivery. A comparison of these measurements to themselves and to financial risks, benchmark data or other appropriate measures is used to develop a gap analysis. This analysis enables the team to identify areas that do not meet expected results.
(5) Continuous Improvement Continuous improvement is an attitude maintained by all our team throughout client service engagements. Continuous improvement is a process in which the engagement team uses the gap analysis performed previously as a framework to identify opportunities for performance improvement. The team considers both financial and non-financial, measures, analysing your key issues, business processes, critical success factors, key performance indicators and management controls that can lead to the timely identification of opportunities for cost reduction, revenue enhancements and quality improvements. The specific approach of focusing on business processes and risks permits our team to provide our clients with valuable, proactive advice. It is more comprehensive than the traditional audit that was developed in the industrial age, a time when financial statements captured a company’s most strategic components. Today, an analysis of these components is not enough. Companies demand a broader measure of success. With this in mind our team is better positioned and prepared to look at the operations behind the financial statements. But that does not mean that financial statements are ignored as the audit aspects of our approach are designed to comply with professional auditing standards.
What sets “Our Approach” apart from traditional audits is the recognition that business processes are dynamic and subject to a number of influencing factors.