What is the benefit of external audits in the context of preliminary control?

Choosing the option regarding the prevention of problems highlights a fundamental benefit of external audits in preliminary control. External audits serve as a proactive measure that helps organizations identify weaknesses or deficiencies in their processes before they escalate into significant issues. By examining financial statements, operations, and compliance with laws and regulations, external auditors provide objective assessments that can uncover potential risks.

This scrutiny allows businesses to address problems early on—be it inadequate internal controls, operational inefficiencies, or compliance issues—before they manifest as larger challenges. Consequently, the insights gained from these audits enable management to implement corrective actions in a timely manner, thereby enhancing overall organizational performance and stability.

While compliance with regulations, identification of growth areas, and engagement are certainly important functions within an organization, the primary role of external audits in preliminary control specifically centers on the proactive mitigation of risks and prevention of future problems.