Annual IFRS audit is a statutory procedure for Cyprus Companies, but the real value of the audit process goes far beyond “ticking a box”. Having independent and impartial auditors confirm that, what an organisation claims about its financial position and about the process behind these claims, are true and fair is valuable for a number of reasons. For example:

Shareholders – beneficial owners of the organisation: In many cases the shareholders are not involved in the day to day running of the business. In such cases these people need the assurance that they are using reliable financial data to evaluate and draw an accurate picture of their investment. Audit procedure is essential for them as it provides a trusted second opinion on the organisation’s financial data and an insight as to how well it is being run.

Company accountants and finance managers: These people are in charge of the organisation’s finances. For them, going through an audit it might be a little uncomfortable at times, but it is most certainly offering a peace of mind. The reason is because an independent expert verifies that they carried out their work properly and their numbers give a true and fair view of the organisation’s financial position. Additionally, many company accountants and finance directors value working closely with auditors, since it is believed that the latter can help to solve complex accounting problems, offer world class advice on issues ranging from governance to business processes and keep them up to date with the latest techniques, rules and regulations.

Other stakeholders: Depending on the organisation’s activities, the outcome of an audit process may be interesting to a whole range of other stakeholders, such as financial institutions, tax regulators and the general public.

Furthermore, an audit will look at the organisation’s “internal control systems” as well as the finances.  This procedure can ensure, amongst others, that the business is controlled according to clear rules, policies and regulations.