the relation between external audit and company's financial performance!
In my opinion, an external audit can play a significant role in improving the financial performance of a company in the following ways:
In my opinion, an external audit can play a significant role in improving the financial performance of company be : Comprehensiveness in scrutiny and complete independence in giving opinion, and he has a spirit of responsibility at work
This is an example of asking the wrong question and therefore getting the wrong answer. External audit's role is assurance, not improving financial performance. If management wished to improve the company's financial performance, there would be a range of actions better than turning to the external auditors. Any benefits to financial performance arising from the audit, such as those identified in the above answers, would be incidental only.
Christopher C Kelly yes there is no doubt about this , but i want to study the relation between the external audit and the financial performance, because generally when we speak about company's financial performance in researchs and studies we related it to the internal audit
Hello Auachi Yousra . Internal audit, like external audit, is primarily an assurance role which may or may not impact on financial performance. When we consider financial performance, we typically look at management strategy, revenue, cost, synergy and efficiency. So I am unsure whether your research is aimed at financial performance or audit? Maybe we can provide better answers if you tell us your research question.
Christopher C Kelly i know that there is no direct relation between the 2 variables , but the connecting ring is the financial information.
external audit ensures the quality of the financial information disclosed in the financial statements, that is used in the evaluating company's financial performance. and my research it's really not about the external audit but about the audit standars (in my case it's about the algerian auditing standars that is matching with ISAs).so,my Question is :how can the ISAs contribute in improving company's financial performance?
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