What is Financial Audit Risk?
Audits are assessment tools companies use to determine how well its operations meet financial and business relations or guidelines. Companies may use a mix of internal and external audits for reviewing their business operations.FactsFinancial audit risk is the possibility auditors will find material misstatements or significant errors in a company’s financial information. Misstatements or errors may lead auditors to issue adverse reports on the company’s financial information.FeaturesFinancial audits use a series of fieldwork procedures when trying to discover financial misstatements or errors. Interviewing employees, testing internal controls and reviewing prepared financial information are common fieldwork procedures.BenefitsFinancial audits can help companies find financial information errors before the errors become magnified over time. Early detection can limit the legal liability of companies and ensure companies do not lose large amounts of cash from accounting failures.Signific
