Why SMEs should consider hiring professional auditors

Small and Medium Enterprises(SMEs) have been advised to consider hiring audit services of registered accounting firms that are licensed by the Institute of Certified Public Accounts of Uganda (ICPAU).

This is in order to improve their business processes to drive their enterprise growth and development.

The auditors possess expert knowledge and experience which help them advise the SMEs on how to streamline their processes and improve them.

It also helps the SMEs to make cost savings within their supply chain.

Speaking at a webinar organised to discuss the role of ICPAU in supporting SMEs in Uganda, Mark Omona, the director standards and regulation at ICPAU said there are key considerations that the SMEs in Uganda should know and follow before they access services of accounting firms.

These are: price for the services, the type of advice/engagement, industry experience,the specialty of service the auditing firm offers, professional certifications, the prior relationship with the auditor (including the level of trust).

The other key considerations include the reputation and image of the auditor, the personality of the owner-manager, and SMEs’ perception of the roles and competencies of the auditor, transparency in communication, ability to adapt among others.

Omona said auditors are professional accountants who have the competence to offer services in any organisation subject to the provisions of the ICPAU code of ethics.

These services include;accounting, auditing, taxation services such as preparing and filing tax returns, and financial management services such as analysing and advising on the financial implications of organisational strategies.

He noted other roles such as: business advisory, management accounting services such as preparing budgets, reporting financial performance, preparing forecasts, and insolvency practice, among others.

"You need the right auditor and you need to have the right records of books of accounts. If you are making losses, the results you have in the audit can help you improve and be in position of running your business in a much better way," he guided.

During the audit process, Omona said SMEs should ensure that the audit team is adequately identified, and the senior person should be in attendance at the initial interview.

Regarding the audit execution, he advised: "Ensure the auditor has access to all the factual information needed to perform the audit, hold regular meetings to reconcile audit findings, and respond to notices and information requests urgently."

To support SMEs, ICPAU conducts business clinics to increase awareness of the need for accountancy services, develops resources addressing the delivery of services to SMEs, participates in policy and regulatory changes among others.

The Institute is also enriching educational programmes for competency development to service SMEs, commissioning research to identify the critical needs of SMEs, and repurposing existing guidance to be more applicable to accountants in SMEs as opposed to larger organisations, among others.

Brenda Amony, one of the professionals said the deal flow facility is a match making initiative offering technical support to the SMEs to facilitate their readiness to undertake investment opportunities.