Advantages of auditing a company
Some of the main advantages of financial auditing are:
Consistency and compliance
Auditors are experts in financial accounting standards as well as the local laws and regulations. If the company is intentionally or unintentionally not compliant with accounting standards or the law, an audit will be able to identify the same
Effective systems and controls
An objective assessment of the company’s processes and internal controls provide valuable feedback. Regular audits help the company evolve its systems and controls to be effective.
Easier insurance claims
Insurance claims are usually disbursed only after a full audit to verify the value of the claimed damage. When audits are performed regularly, the insurance companies know that the amount that is being claimed is correct.