Expanding your business globally is an exciting adventure full of opportunities. Let’s face it, audit processes can get pretty complicated when you are dealing with international subsidiaries.
Handling logistical challenges
“One of the biggest hurdles in international audits is logistical coordination,” says Sarah Squires, Chartered Accountant and Registered Auditor at MGI Midgley Snelling LLP.
“Auditing across different time zones, dealing with language barriers, and navigating various regulatory frameworks can be a real headache. It takes careful planning and clear communication to get it right.
“Imagine a global company with offices in the UK, Germany, and Japan,” Sarah explains. “Coordinating audits across these regions means juggling time zones, using translators, and tailoring audit procedures to meet local standards.”
You’ll need to keep communication flowing smoothly between your team and the auditors.
Setting up a solid plan that meets everyone’s expectations and outlines reporting procedures is key to building trust and consistency.
Picking the right auditor
You don’t have to use the same audit firm for all your subsidiaries, but there are definite perks if you do.
Consistent auditing practices make everything more reliable and give the auditors a better understanding of how your business operates.
“Our team knows how to handle the complex regulations and make the audit process seamless across your whole group,” says Sarah.
“We offer customised solutions to streamline data collection, improve reporting accuracy, and find strategic insights to help with the decision-making process.”
Staying compliant with regulations
Dealing with international audit requirements means you must know the local regulations inside and out.
For instance, after Brexit, UK subsidiaries might need audits unless they meet specific criteria under the Companies Act 2006 Section 479C.
“Our team ensures they abide by the relevant audit standards, including any modifications to the International Standards on Auditing (ISAs) as required, to help you stay compliant across your global operations,” Sarah points out. “We can help you consolidate financial statements and set up efficient reporting mechanisms to meet these standards.”
Wrapping it up
Going global is thrilling, but it comes with its own set of audit challenges.
By tackling logistical issues head-on, ensuring you are compliant with all the necessary regulations, and choosing the right audit partners, you can manage audits effectively across all your locations.
How can MGI Midgley Snelling LLP help?
If you need personalised guidance on starting and managing international audits, reach out to us today. “We’re here to support your journey towards international success,” says Sarah.
For tailored advice on starting and managing international audits, contact our team.
