Cashmir Capital - Internal Audits Support

Outsourcing Internal Audits is an important option

Preparing the audit reports ahead of the external auditor's opinion on the company's financials would save a considerable amount of money and time for project developers and corporations. This is especially true during the funding process, as lenders and other financial partners would require, during the due diligence, an independent external auditor's opinion, preceding the financial close of a loan.

Our auditors and accountants have:
- In-depth knowledge of the standard audit requirements and rules.
- Extensive experience in the field and can share best accounting practices and insights with other internal teams.
- An understanding and use of the external audit approach and risk-based auditing.
- The ability to provide consulting while auditing.
- Compliance with ISO 1901, US GAAP and IFRS accounting standards.

It is important to establish an “auditor” file for regulatory agency correspondence and for copies of new or changed documents about fixed asset additions and disposals, debt agreements, leasing arrangements, complex transactions, technology modifications and major customers and vendors.

The bottom line

Being prepared for an external audit will not only assist the external auditors but will also ensure that you have a better understanding of the organization as well. You will increase the value of your company to external parties and counterparties. By working together, you and the outsourced auditors are more likely to discover ways to improve efficiency and minimize errors. The internal auditors can actually become part of the financial team and help with training, financial management, risk mitigation and governance.

Reconciling details to the general ledger account totals is critical. For example, reconciling all bank accounts, accounts receivable, accounts payable and equipment lists. Requests should be made for templates, copies of prior working papers and clarification so that you can prepare information and reports in a format acceptable to the external auditor.

Outsourced internal audits often take much less time to perform with greater effectiveness.

The bottom line of outsourcing the internal audit benefits is timely preparation for external audits, cost savings, full compliance, the establishment of benchmarks for better performance, and an unbiased appraisal of the financial situation for better strategic planning and administration.

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Introducing the concept of flow financing