Audits can feel mysterious if you’ve never seen one up close. What are auditors actually looking for? How do they form an opinion? And what happens to all those documents you send?
To demystify the process, let’s go behind the scenes of a typical SC Audit engagement — showing how we work, step by step, and how each stage adds value to your business.
Step 1: Understanding Your Business
Before crunching numbers, we invest time in understanding your operations — your industry, business model, key risks, and internal processes.
This context ensures our audit plan focuses on what truly matters, not just generic checklists.
Step 2: Planning and Risk Assessment
Our audit team identifies where material misstatements could occur — whether due to error, system issues, or fraud.
We analyse prior-year results, perform analytical reviews, and meet management to discuss any big changes since the last audit.
🕵️ The goal: focus on high-risk areas and streamline low-risk sections to save time and cost.
Step 3: Fieldwork and Testing
This is where most of the action happens.
We gather and verify evidence — bank statements, supplier confirmations, inventory counts, and supporting documents.
Modern auditing tools allow us to test entire data sets, not just samples, giving better insight into potential irregularities.
Step 4: Review and Quality Control
Before signing off, engagement partners and reviewers (under ISQM 2) review the audit file for accuracy, documentation quality, and compliance with IRBA standards.
This step ensures audit quality and independence — the cornerstone of trust in financial reporting.
Step 5: Reporting and Feedback
Finally, we deliver the audit report and meet with management or the board to discuss findings.
Even if there are no misstatements, we provide management recommendations — ways to strengthen controls, streamline systems, and prepare better for next year.
What Clients Appreciate Most
- Transparency: clear communication throughout the process.
- Education: understanding what auditors look for (and why).
- Partnership: practical insights, not just compliance.
Conclusion
An audit is not just a once-a-year obligation — it’s an opportunity to get an expert perspective on your financial health and business processes. At SC Audit, we see each engagement as a partnership built on trust, professionalism, and value.
Curious what an audit for your company would look like? Contact SC Audit to schedule an introductory consultation and learn more about our client-focused approach.
Frequently Asked Questions
What happens during the planning and risk assessment stage of an audit?
The audit team identifies where material misstatements could occur, analyses prior-year results, performs analytical reviews, and meets management to discuss significant changes. This stage ensures the audit plan focuses on what truly matters, saving time and cost in low-risk areas.
How does an auditor test transactions and balances during fieldwork?
Auditors gather and verify evidence including bank statements, supplier confirmations, inventory counts, and supporting documents. Modern auditing tools allow testing of entire data sets rather than just samples, giving deeper insight into potential irregularities.
What quality controls are applied before an audit is finalised?
Before signing off, engagement partners and reviewers check the audit file for accuracy, documentation quality, and compliance with IRBA standards under ISQM 2. This ensures audit quality and independence are maintained at the highest level.
What does SC Audit include in the management letter after an audit?
Even if no misstatements are found, SC Audit provides management recommendations to strengthen internal controls, streamline systems, and prepare for the next audit cycle. These practical insights add value beyond the statutory requirement.
How long does an audit engagement typically take from start to finish?
Most SME audit engagements are completed within 4 to 8 weeks of receiving complete documentation. The timeline depends on business complexity, the quality of records provided, and the time of year. Clear communication throughout ensures transparency.
SC Audit is part of the Schoemans Group that includes Schoemans – Chartered Accountants in Cape Town and Acrede – Quality Auditing and Tax Consulting.