FAQs

It helps organization in following areas:

Control assessment – Identifying gaps, also known as “trouble spots,” where procedures and controls are not properly designed
Testing – Performing tests of controls to verify whether controls are working as designed
Risk assessment – Assisting management with identifying and prioritizing areas or processes that require attention and audit focus
Reporting – Providing observations and recommendations to improve processes and controls
Process flow and documentation – Gaining an understanding of the processes and procedures as they currently exist, especially with respect to the IT systems utilized in the processing of high volumes of policyholder/claims data

The following are the fruits which you can reap after having proper trail of your business transactions:

Provides you the information you required to run your business smoothly
Aids you to plan your cash flow
Draw your attention towards strengths and weakness of your business
Provide you the documentary evidence for future reference
Helps you to management debtors and creditor efficiently and effectively
Be the base of generating reports for your business stakeholders such as creditor, debtors, tax authority, employees, banks, investors etc
To fulfil legislators requirements which requires to hold record for certain number of years
Makes faster to generate final account and get them audit

They would involve the following:

An external auditor can help identify areas where your books or accounting practices are no longer in compliance with new Internal Revenue Service regulations
An external audit can also pinpoint where your compliance efforts may be lacking
Internally and externally, your financial statements will carry more weight if they’ve been vetted by an external auditor
For publicly traded companies, external audits offer an unbiased glimpse into the accounting practices of the organization
For family businesses, closely held corporations and non-profits, these audits provide common ground for stakeholders to properly assess the financial health of the organization
External auditors examine bookkeeping records without the filter of personal relationships clouding their judgment. For them, the financial statements will tell the unvarnished truth, and their impartial inspection could keep your business from taking a major loss
You can have fresh eye addressing areas of improvement while these recommendations don’t have to be implemented immediately, knowing where waste and inefficiency are originating will allow you to put a plan in place to address the problems over time

There could a couple of positive outcomes which due diligence services can handover to you. These are as follows:

Process Audit–This would include the get close observation of company’s processes and areas of improvement in them in order to drive desired results out of each
Compliance Audit–This focus on the fulfillment of compliance requirements for number of regulatory authorities
Marketing Audit–This exercise considers internal and external factors impacting on marketing process and outcome related to it
Information System Audit–This would contain testing of effectiveness and efficiency of information process, control, compliance with policy, and safeguard of information asset
Reconciliation Audit-This could possess Ledger to sub ledger reconciliation, Bank reconciliation, inventory reconciliation audits, and customer and supplier reconciliation

This could involve customized requirement for certain purpose. This may include:

Reviewing of certain areas in financial accounting cycle
Getting focused upon for inventory part
Focusing for some issues in sales cycle
Addressing some pitfalls in supplier payments
Getting advice on manual system in the way to prepare a base of ERP implementation

There are multiple areas which would be impacted after you complete your VAT implementation.