Result of Audit Failure

Audit Failure
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Audit Failure
In modern society, auditing is promoted as a technology that enables stakeholders to control, manage and prevent risks. Usually, companies are required by law to submit an audit report at the end of a financial year. An audit failure can significantly harm the company, and hence an auditor needs to carry out an audit comprehensively. This will discuss the failure to gather sufficient information as an auditing issue, its effect, the auditor's role, and the psychological factor that leads to audit failure. An audit failure occurs when there is a severe distortion of the finances reflected on the audit reports. An auditor is responsible for gathering the required information during an audit to ensure that they write a well-informed report. Failure to compile all the financial statements for an organization or business can result in severe errors during the auditing process (Leaver et al., 2020). Therefore to avoid distortion in the audit, an auditor must ensure they gather sufficient information.