The Role of Audit Frequency in Ensuring Corporate Financial Compliance

Abstract

The frequency of external audits plays a significant role in strengthening financial oversight, particularly by ensuring higher compliance with accounting standards and regulatory requirements. This study explores the relationship between external audit frequency and financial compliance, positioning audits as an essential external control mechanism for organizations. Using a qualitative approach, the research relies on secondary data drawn from books, peer-reviewed journals, scholarly articles, and official reports. The findings indicate that increasing the frequency of external audits enhances the timeliness and accuracy of financial reporting, while also fostering stronger accountability and transparency in financial practices. These results are consistent with agency theory, which highlights the importance of independent oversight in reducing conflicts of interest between management and stakeholders. Empirical evidence further supports the positive correlation between frequent audits and compliance, though the degree of effectiveness is influenced by contextual factors such as organizational size, internal control systems, and the balance between benefits and associated audit costs. Consequently, the study emphasizes the need for adaptive, risk-based audit policies to ensure long-term financial integrity and sustainable compliance.