Which of the following is a key benefit of auditing?

The key benefit of auditing lies in its ability to ensure that financial records are accurate and compliant with established standards and regulations. Auditing involves a systematic review of financial statements and operations, which helps to identify any discrepancies, errors, or instances of non-compliance.

This process enhances the reliability of financial reporting, builds investor and stakeholder confidence, and aids organizations in maintaining compliance with laws and regulations. By verifying that the financial records reflect true and fair views of the organization's fiscal health, auditing serves as a critical tool for accountability and transparency in financial management.

Other options misrepresent the purpose of an audit. For instance, validating financial forecasts and encouraging non-compliance contradicts the very objectives of an audit. Approving all expenditures without review undermines the audit's role in scrutinizing financial activities. Minimizing the need for reporting would go against the essence of auditing, which emphasizes thorough documentation and reporting of financial health and compliance.