What Are The Advantages Of A Non-statutory Audit?


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Connor Sephton answered
A non-statutory audit is one that is not required by law and so has no a legal requirement or implications. Very often companies and organizations undertake audits because they are being compelled to do so by law and so see it as a means to an end, and a major inconvenience and chore into the bargain. This is quite a negative view of an audit when in fact they can be used as a very effective business tool.

A non-statutory audit has quite a few advantages, and the first one, when you have overcome the idea that it is an unpleasant task, is that it is a great way of focusing the mind actually onto the business and the expectations that you have of it. This may seem to require a lot of work for a small return, but the return is actually huge. It is all too easy to get so caught up in the day to day running of a business that the focus becomes less sharp and so it is easy to let a degree of lethargy take over.

Another advantage is that it can give you a clearer idea of your productivity. You will be able to see what are your fastest lines and those that are taking longer to move. This will enable you to make decisions about your marketing strategies, and will also save you money if you tend to do blanket re-ordering.

You will also be able to see whether your stock levels are as you expect them to be, and if they are not you can examine the reasons behind this. It could be that a member of staff is not performing as well as they should, or it could have a more sinister reason and you have a thief in your workforce.

Whatever the reasons, performing this audit should make issues like these come to light so you can assess the results and make productive changes based on your findings.

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