What is the purpose of conducting an audit?

The purpose of conducting an audit primarily revolves around ensuring that an organization adheres to established legal and professional standards. Audits are systematic reviews of financial statements and operations, aiming to provide stakeholders with assurance that the organization's processes, data, and financial records are accurate and compliant. This involves evaluating internal controls, adherence to regulations, and conformity with industry standards, thereby fostering transparency and accountability within the organization.

Audits can also help identify areas for improvement and reduce risks associated with mismanagement or fraud. While they can have ancillary benefits such as improving sales through enhanced reputational trust, the core objective remains focused on compliance and standardization.