Financial auditing and its impact on corporate profitability

Abstract

Currently, companies plan their activities in which
financial auditing is manifested as an instance for
companies to maintain a status through regulation,
which is evidence that good management is handled
in organization. However, many companies present
profitability projection problems, since they do not
apply an effective financial audit for the optimization
of resources and services in terms of obligations, sales
income, costs, expenses, operating activities, etc. This
causes the companies not to project their profitability
in the products, thus decreasing their production. The
methodology applied to develop the research is descriptive
with qualitative analysis, through which bibliographic
reviews were taken as the main instrument. The results
obtained indicate that the audit plans and programs
have an impact on the projection of the profitability
of the financial statements. It should be noted that
effective financial auditing makes companies to project
themselves at the national and international level and the
profitability of these companies is designated by means of
management, demonstrating the reliability and stability
of the stability of the project that the company undertakes.
It is important that companies should have internal
auditing units carrying out evaluations in order to timely
detect inconsistencies or weaknesses in the Systems.