Important to Do, This is the Purpose and Benefits of Auditing for Your Company

The benefits of auditing are not only to help present more accurate financial statements, but also to help find out if there is fraud or actions that can harm the company’s finances. Then, what are the benefits of auditing for companies? Check out the full discussion in this article.

Definition of Audit

Quoting Wikipedia, auditing is a process of collecting and examining evidence regarding information in order to determine and make reports regarding the level of conformity between information and established criteria.

Another definition, audit is an evaluation of the financial statements of a business that is carried out independently and objectively.

The definition of audit from other sources is an examination completed fundamentally and deliberately, independent of the fiscal summaries that have been ready by the executives, and accompanied by bookkeeping records and supporting proof.

The audit process must be carried out by a competent and independent person, and follow the audit standards that have been set. Those who do so are referred to as auditors.

In conclusion, the audit is a process of examining financial statements that are carried out systematically and independently, also accompanied by supporting evidence.

How important is the benefit of an audit to a company? Audit assists in presenting more accurate financial reports as well as avoiding or uncovering fraud committed by management within the company itself. Not only that, audits can increase the integrity of financial statements to be trusted by external parties, such as investors and the government.

To simplify the audit, as well as to support a smoother audit process, it is highly recommended to start managing the company’s finances more neatly. Visit hong kong audit firm