The annual auditing of financial statements is a statutory requirement in Malta; nevertheless it produces a series of notable advantages:An audit helps to identify weaknesses in the accounting systems and enables us to provide suggestions for improvementsAn audit assures directors, who are not involved in the accounting functions on a day-to-day basis, that the business is running in accordance with the information they are receiving. An audit also helps reduce the risk of fraud and poor accounting.An audit facilitates the provision of advice that can have real financial benefits for a business, including how the business is running, what margins can be expected, and how these can be achieved. Advice can cover anything from the tightening of internal controls, to tax planning or reducing the risk of fraud.An audit will enhance the credibility and reliability of the figures being submitted to prospective investors. If an owner is planning on attracting investment or selling shares in the next three years, carrying out regular audits is highly beneficial.An audit adds credibility to published information for employees, customers, suppliers, investors and tax authorities:Credit ratings may be affected by not having an audit. Suppliers may not be prepared to give appropriate credit limits. Banks and trade suppliers rely in part on credit rating agencies’ assessment of the company, and will look more favourably on companies that have an audit.In the event of insurance claims, loss adjusters often have more faith in audited accounts.An audit provides assurance to shareholders (if they are not directors closely involved in the business) that the figures in the accounts show a true and fair view.