A new study by KPMG has found that many small and medium-sized enterprises (SMEs) in the UK are failing to derive maximum benefit from their audits.
More than half (56 per cent) see the audit as a "largely mechanical process" that varies very little from year to year.
As well as this, many companies (47 per cent) only occasionally or never meet with their auditor except during the audit season, in spite of being aware that strong communication can bring better value.
'Strong and open' relationship vital
"A strong and open relationship between a company and its auditor is vital if the audit is to produce the sort of far-reaching benefits it is capable of producing," said KPMG's head of audit, Richard Bennison.
He added that finance directors in SMEs have a hard job, with their responsibilities often extending "far beyond pure finance", and therefore have different issues competing for attention.
"That is why it is so important to maximise the return on any investments," he said.
The survey also indicated that auditors are doing a robust job, with 70 per cent of firms saying that their auditor is prepared to challenge them on the way that their financial information is organised.
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