Audits of financial statements identify opportunities to improve business performance, according to a recent Deloitte survey. Explore findings from the study.
Today’s audit—a business opportunity
Financial statement audits have been a longstanding, fundamental pillar of the capital markets, helping investors make informed decisions and invest with confidence. But according to the survey of 300 C-suite executives and 100 audit committee members, that’s just part of the value an audit can provide.
Powered by technology and innovation, the audit has evolved into a business opportunity that can help guide and inform future business decisions.
Download the Audit Value Survey
We continue to take great pride in the auditor’s foundational role of enhancing trust and confidence in the capital markets. This survey indicates that board members and executives also recognize the power of the audit to provide insights, identify inefficiencies or risks, and help inform companies’ best practices.
—Joe Ucuzoglu, chairman & CEO of Deloitte & Touche LLP
Companies that capitalize on audit findings are more likely to generate higher levels of growth
Surveyed business leaders of companies that capitalize on information received from the audit all or most of the time indicate stronger growth than those that do so rarely or never. While there are many factors that contribute to growth, the survey results show that over the last three to five years, these companies are 22 percent more likely to achieve growth that business leaders consider “good” (seven or eight on a scale of one to ten). And they are 47 percent more likely to achieve growth that business leaders consider “great” over the last three to five years (nine or 10 on a scale of one to ten).
Despite overall awareness of the value that today’s audits deliver, many companies still miss out on the opportunity an audit provides to improve their business. According to the survey, one-in-three companies rarely or never leverage the information received from their financial statement audits.
Unlocking the full potential of the audit
Auditors and their clients both have room for improvement when it comes to unlocking the full potential of the audit. Nearly one-half (45 percent) of C-suite executives and 48 percent of audit committee members whose companies don’t always leverage information from their audits do not have processes in place to leverage insights gleaned from an audit.
In addition, 79 percent of C-suite executives and 94 percent of audit committee members assert that making financial statement audit findings more transparent within their organizations would improve their company’s performance.
Please click here for further information about the report.
See also link to the original source here.
For further information, please contact:
Weiheng Jia, Partner, Qin Li Law Firm, a Chinese law firm and a member of the Deloitte Legal global network.
weihengjia@deloittelegal.com.cn
Mark Schroeder, Qin Li Law Firm, a Chinese law firm and a member of the Deloitte Legal global network.
marschroeder@deloittelegal.com.cn
