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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