Why is auditing required, and what powers does an auditor hold?

Auditing helps management detect errors and fraud, gives an independent view that laws and controls are actually in place, and lets the auditor demand improvements that are verified in follow-up.

Auditing helps management detect errors and frauds, provides an independent view that all relevant laws, statutes and controls are implemented and adhered to, and crucially gives the auditor the power to demand improvements, which are then checked in a follow-up audit. Its ultimate purposes mirror the regulatory motivations: protecting investors, protecting patients and customers, and providing confidence. The follow-up power is what gives an audit teeth — findings are not optional suggestions.