Not necessarily. A request for an audit is often about confidence — a partner wants independent assurance that the numbers are right, perhaps before a sale, investment or exit. The real question is why now. Your rights and obligations depend on your partnership agreement or shareholders' agreement and company constitution. Good records make an audit routine rather than stressful.
What it depends on
The full answer depends on your specific circumstances. Here’s what matters.
Your agreements
Partnership and shareholder agreements often set out information and audit rights. Some shareholders can also request an audit under the Corporations Act in certain circumstances.
The underlying concern
An audit may be the formal route to answer a simpler question — cash flow, drawings, or related-party transactions. Asking directly can clarify scope.
Scope and cost
A full audit, a review, or agreed-upon procedures on specific areas are different engagements with different costs. The right choice depends on the concern.
The last 10%
What a qualified professional can add
The answer above covers the general position. Here’s where professional judgement — applied to YOUR specific situation — makes the difference.
- Recommending audit, review or targeted procedures for the concern
- Providing independent findings both parties can rely on
- Identifying record-keeping gaps before they become disputes
Questions to ask before you engage one
If you decide to engage a professional, these questions help you evaluate whether they’re right for your situation.
What specific concern is the audit meant to address?
Would a review or agreed-upon procedures be enough?
What records will you need from us, and for which periods?
Who will receive the report, and who pays for it?
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General Advice Warning
The information on this page is general in nature and does not take into account your personal objectives, financial situation or needs. It is provided by Global Mutual Funds Pty Ltd (ABN 20 090 555 436, AFSL 222640) and should not be relied upon as a substitute for professional advice. Consider whether the information is appropriate before acting on it. Read our Financial Services Guide.