Q:

Why is auditing important?

A:

Quick Answer

An audit plays a valuable role for companies and charitable organizations to maintain integrity and attain specific goals, as stated by The Houston Chronicle. A wide range of business concerns benefit from an unbiased audit.

Know More

Full Answer

An effective audit helps organizations achieve goals and objectives by measuring overall performance and productivity, as detected in transactions and business records, according to The Houston Chronicle. Further, an audit protects an organization from financial misstatements, presenting a reliable health picture of the organization to the markets. Fraud protection is a benefit of audits achieved through internal controls that prevent and detect accounting irregularities. Strengthening the financial integrity of an organization through an audit reduces risk and the cost of capitol.

According to True and Fair, an audit confirms the financial claims as stated by an organization in various ways. An audit provides investors and shareholders confidence by providing trusted information concerning financial statements and how well the organization is run. An audit inspects internal control systems, ensuring they are sufficiently strong and working properly. In addition, an audit benefits accountants and tax collectors by addressing accounting problems and offering up-to-date information on techniques, rules, and regulations. Finally, financial analysts use an audit to determine the value of an organization's shares.

Learn More

Related Questions

  • Q:

    What is the importance of financial accounting?

    A:

    Financial accounting is important because it provides an organization's stakeholders with business statements, allowing them to know if the organization is making or losing money. This information is essential in determining if a company is able to maintain profitability, according to Accounting-Careers-Guide.com.

    Full Answer >
    Filed Under:
  • Q:

    What is the importance of international finance?

    A:

    International finance is important for determining exchange rates, comparing inflation rates, investing in foreign debt securities, ascertaining economic conditions in other countries and investing in foreign markets, according to For Dummies. The International Financial Reporting Standards (IFRS), adopted by more than 120 countries as of April 2011, are an important backbone of international finance and offer numerous benefits, according to Investopedia.

    Full Answer >
    Filed Under:
  • Q:

    Why is academic integrity important?

    A:

    Academic integrity is important because it ensures that students possess the responsibility to acquire skills honestly in the classroom that aids them in the workforce. Academic integrity also guarantees students a quality learning experience in which work is evaluated fairly and hard work is recognized and valued.

    Full Answer >
  • Q:

    Where can I look up an EIN number?

    A:

    Employer identification numbers for publicly traded companies are found on company websites for investor relations, according to WD Adkins for the Houston Chronicle. Most companies have a page for filings with the U.S. Securities and Exchange Commission. Companies are required to list EINs on the first page of filing documents.

    Full Answer >
    Filed Under:

Explore