Business processes need various forms of internal assessment to facilitate supervision and monitoring, detect and prevent irregular transactions, measure ongoing performance, maintain adequate business records and to promote operational productivity. With effective auditing, this all can be achieved easily as it helps organizations achieve goals and objectives by measuring overall business performance and productivity.
Audit is an effective functionality for business management, as the audit is conducted to ensure the policies are being followed. It enables to make valuable suggestions for improvement and to formulate future policies of a business. It also helps management to review the policies from time to time. Here are some of the reasons, why auditing is important for business organizations:-
- Helping protect assets and reduce the possibility of fraud
- Establishing monitoring procedures
- Increasing financial reliability and integrity
- Improving efficiency in operations
- Ensuring compliance with laws and statutory regulations