Importance of auditing in business towards business success in UK

INTRODUCTION

1.0 Auditing within business context

Today, businesses can understand their general financial health by examining auditing reports done during different periods. First, disbanding myths around this concept can best understand the main questions regarding the use and the benefit of auditing. Dallu (2021) and Kesimli, Kesimli, and Achauer (2019) have a consensus that auditing should not only be looked at from the aspect of compliance but primarily from an operational viewpoint that enables business stakeholders to understand how different decisions made in the past has impact business operations over time. From this perspective alone, one can infer that auditing, as it is practised in businesses today, has very little to do with compliance and more to do with understanding an enterprise's performance and competitiveness, mainly to make data-driven decisions. This broad spectrum of how business auditing is defined in today's world cuts across the entirety of this study as the research strives to answer identified research questions.

Igibayeva et al. (2020) and Coffee (2019) defined auditing as the scrutiny carried out on business financial records to ensure they match the accuracy resented by business operations. However, Olagunju & Owolabi (2021) illustrate a situation where many businesses are not only conducting financial scrutiny but are also keen on auditing business processes to eliminate wastefulness that comes with repetition of roles, ineffectiveness, and any other form of advantage people within and outside a company can plan. The conceptual definition of auditing adopted in this research is formal, where the knowledge of analyzing financial information to test reliability and validity is key in any business performance. This study also looks at auditing through the lenses of marketing competition and how effective auditing is as a tool for gaining a competitive advantage for a business.

While businesses can engage internal or external auditors, the former creates an excellent opportunity for an enterprise to understand its accounting mistakes and correct them (Olagunju & Owolabi, 2021). In cases where business auditing is treated with recurrency and proper integration with other business processes, errors in accounting systems and practices reduce because of every stakeholder under their role. Conversely, a business that only undertakes to audit when required by law or internal operating procedures provides significant gaps between one auditing and the other (Council, 2019). Today's business environment tends to support scrutiny of financial records more regularly, mainly when a business strategy agenda is to cut operation costs and streamline its operation with industry leaders.

1.2 Statement of the problem

The key problem addressed in this research is the need for practical application of auditing practices and principles that lead many businesses to miss the competitive opportunities they would have gained by investing in sound business auditing systems. The idea that a business, no matter the size, engages in auditing is not enough; auditing should be purposive, timely, and conducted for more internal operation understanding instead of a mere compliance measure. Many enterprises need a clear...