Why Small and Medium Enterprises Still Need External Audits

Many small and medium enterprises (SMEs) believe that external audits are only necessary for large corporations. However, audits play a vital role in strengthening financial discipline and credibility, regardless of business size.

External audits help SMEs ensure that their financial records are accurate, complete, and compliant with accounting standards. They also improve the reliability of financial information used for decision-making.

Banks, investors, and government agencies often require audited financial statements before approving loans, accreditations, or permits. SMEs without audited reports may face delays or rejections.

Audits also help identify weaknesses in internal controls and accounting processes early, allowing business owners to correct issues before they escalate.

Audit and assurance requirements can be complex and highly technical. To ensure compliance, accuracy, and long-term business sustainability, it is always best to consult a licensed and experienced professional firm. DV Consulting, led by Danhilson Vivo, CPA, REB, REA, provides reliable audit and assurance services tailored to Philippine businesses.