How do audits help in controlling revenue and expenditure?

Audits play a crucial role in controlling revenue and expenditure by assessing financial records for accuracy and compliance. This process involves a systematic examination of a company's financial statements, accounting records, and operational processes to ensure that they meet established standards and regulations. Through an audit, discrepancies can be identified, and financial practices can be evaluated against internal policies and external legal requirements.

By ensuring that financial records are accurate, audits help maintain the integrity of financial reporting, which is essential for making informed business decisions. They also promote accountability and transparency, fostering trust among stakeholders, including investors, employees, and regulatory bodies. Overall, effective auditing helps organizations manage their financial resources more responsibly, ultimately leading to better control of revenue and expenditure across the board.