Financial Audit as a Key Tool in Business Planning and Development. Its Impact on the Profitability of Companies

Abstract

This article analyzes the relationship between Financial Audit and a company's profitability. Internal auditing and financial planning are factors that can have a positive impact on business profitability in Ecuador, although more specific studies are needed to determine the exact relationship between these variables. Internationally, financial audit and financial planning have been found to improve profitability in different sectors and countries. However, internal auditing is not the only variable that influences profitability, as other factors such as business strategy, financial management, and adaptability to the market can also have a significant impact. Methodologically, this article applies the bibliographic review methodology, which involves searching for and critically analyzing relevant bibliographic sources for a specific topic. This methodology allows for an understanding of the evolution of the topic, identifying theories and models that have been proposed to explain the relationship between both concepts and obtaining a complete and updated perspective on the topic for future research or business decision-making. Among the most relevant results, it is appreciated that financial statements, work papers, and the final financial audit report are important tools that can help identify the relationship between financial statements and business profitability, the relationship between work papers and business profitability, and the relationship between the final financial audit report and business profitability. The analysis of financial statements can provide important information about a company's profitability, while work papers can help identify strengths and weaknesses in terms of financial management. Finally, the final financial audit report can provide recommendations to improve business profitability if weaknesses in financial management are detected. In conclusion, although internal auditing and financial planning are important factors in improving business profitability in Ecuador, it is important to consider that there are other factors that can also influence profitability. Additionally, financial statements, work papers, and the final financial audit report are valuable tools that can help understand the relationship between financial management and business profitability.