Impact of External Auditing on Financial Institutions
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Abstract
The latent uncertainty of suffering risks and detrimental results in the operations carried out by financial institutions is an impediment to meet the proposed objectives, which is why there is a need to incorporate external audits in which different criteria can be known and applied by independent people to the company. For this reason, external audits have reached a higher level of importance in recent years of pandemic, where the leaders of financial institutions seek to identify the critical points of the company and the emerging risks to which they are exposed, in order to establish an adequate control in real time. In this context, the objective of the research was to evaluate the impact of external audits on the reduction of negative accounting-financial results. Taking as a case study the financial institutions of the city of San José de Chimbo, Chimbo canton, province of Bolivar, Ecuador. Regarding the methodological scope, non-experimental research was used, with a mixed approach, by means of descriptive and correlational methods, which allowed to approach the reality of the object of study, through research techniques and instruments. The results focused on the normative basis, measuring the impact, and determining the variables that influence the negative accounting-financial results within financial institutions in order to minimize them, thus providing a coherent answer to the research question. In conclusion, the external audit is a tool that has a positive impact on financial institutions since it seeks to predict financial failure.
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Paola Karolina Malatay-Monar, Pontificia Universidad Católica del Ecuador Sede Ambato - Ecuador
https://orcid.org/0009-0003-9649-3187
Accounting and Auditing Engineer CP, State University of Bolivar, graduated with a Master's Degree in Accounting and Auditing, mention in Operational and Financial Risks, Pontificia Universidad Católica del Ecuador, Ambato, I am currently working as General Accountant of the Santa Mariana de Jesús Educational Unit in the city of Guaranda, my skills are in auditing, risk analysis in financial institutions and financial management of political organizations.
Santiago Xavier Flores-Brito, Pontificia Universidad Católica del Ecuador Sede Ambato - Ecuador
https://orcid.org/0000-0002-5211-1971
Santiago Xavier Flores Brito, PhD in Accounting and Auditing, Master in Integral Auditing. He worked for 14 years in the Internal Revenue Service in tax control and determination processes. Qualified External Auditor by the Super Intendencia de Compañías and founder of the auditing firm CODEX. He has taught undergraduate and graduate courses in several universities in Ecuador.
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