Why the Most 'Honest' Companies Still Need Auditors
Some business owners say, “We’re transparent. We have nothing to hide. Why do we need an auditor?” It’s a fair question. But here’s the truth: “Even the most honest companies still need audits.”
Audits are not about catching someone in a lie. They’re about building trust, confirming facts, and making sure financial information tells the full, fair, and accurate story. An audit is like a routine medical check-up not because somethign is wrong, but to be certain that everything is working the way it should.
So, what do auditors really do?
Auditors are trained professionals who examine a company’s financial records, systems, and processes. They aren’t there to accuse or assume wrongdoing—they’re there to verify that everything adds up.
They ask questions like:
- Are the numbers in the financial statements supported by actual documents?
- Do transactions follow proper approval processes?
- Are there strong internal controls in place to prevent errors or fraud?
- Is the company following legal and accounting rules?
But Why Bother if Everything Is in Order?
Here’s why audits are still crucial, even for the most ethical organizations:
- To catch unintentional errors – Mistakes happen, even in honest environments. Audits help spot them before they grow into costly problems.
- ∙To protect the company’s reputation – A clean audit report builds public confidence among investors, regulators, and customers.
- ∙To strengthen internal systems – Auditors often suggest ways to improve processes, reduce waste, and protect assets.
- ∙To meet legal or investor requirements – Many companies are required by law or contract to present audited financial statements.
- ∙To promote accountability and transparency – Regular audits create a culture of responsibility across all departments.
Trust Matters — But So Does Verification
Think of an audit as a seal of assurance. It doesn’t mean a company isn’t honest—it confirms that it is, with solid evidence to back it up.
At Phillips Akindele & Co., we believe that honesty and audits go hand in hand. The most reputable companies understand this: It’s not just about being right — it’s about proving it, consistently and professionally.
