Why Financial Auditing is Important, Especially in Times of Crisis
Every company is mandated to audit account books and financial reports to ensure the data's accuracy and provide the company's accurate financial positioning. Financial audit services are important because they assess risks, comply with statutory requirements, consolidate financial information, and evaluate operational efficiency.
The COVID-19 pandemic brought about massive disruption on audit engagements and financial reporting. Moreover, companies have been forced to change their operations. Because of these uncertain times, auditing has become more critical than ever before.
With financial auditing, companies are better equipped to address concerns regarding resiliency.
Moreover, professionals must now navigate their way across the changing financial landscape. "With travel restrictions in place and market volatility on the rise, financial reporting has become more complicated than ever before. Now, businesses have to face complex tax implications, erratic value estimates, and remote working conditions. Because of these, businesses are facing several financial reporting issues. As such, they require the steady guidance financial auditing offers," stated Mr Wong.
Auditors may obtain information from new sources, operate financial controls differently, or utilize a wide range of technological tools to provide the necessary services every company needs. As businesses move forward in this new normal, financial auditing services will guide them in the right direction.
Financial auditing is continuously evolving and adapting to cater to the shifting needs of the industry. However, despite these changes, one thing remains the same. It is consistently providing transparent, timely, and meaningful data to instruct financial reporting. Through financial auditing, businesses can inform their employees, investors, suppliers, and other stakeholders regarding the current and potential impact of the crisis so all parties involved can better prepare for the future."
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