An audit is when your entire business and financials are analyzed and verified by an auditor who gives reasonable assurance to third parties that the information you reported about your business is valid and has been confirmed. Different people have different understandings of audits, and some consider it a mere requirement of the law that they have to oblige in order to continue operations in the country. However, the truth of the matter is that an audit is so much more. If you use the auditors in the right way then you can take so much out of your interactions with them.
For one, an auditor reviews the internal controls placed in your company. Internal control refers to the control systems in place that ensure that the employees of the company maintain ethical working values and do not indulge in any activity that may benefit them at the expense of the firm or benefit the firm where it is not supposed to. Reviewing internal controls also allows you to keep better checks and balances on your employees and ensure that there is no employee theft or threats of damage. This is beneficial for the business in that they improve the standard of their business and their efficiency in manufacturing, storing, and selling their products.
An audit also helps the management of the business to gain the trust of the shareholders. They are more inclined to make an investment that can be used for growth and expansion if they trust the management of the business. Even if the management is ethical and never intended to commit fraud, there is always the chance of human error. Having an auditor review their work is a great way to get better and more accurate information about your business. And that is why management should be happy to share information for an in-depth audit that will be of great use to them.