Impact of External Audit on the Administrative and Financial Management of Agro-industrial Companies (Rice Factories) in the Sánchez Ramírez Province

Abstract

Independent auditing's primary function is issuing an opinion on financial statements, which gain credibility among clients, creditors, investors, and government agencies when certified by an independent auditor with strong accounting expertise. This descriptive/exploratory study analyzed the impact of external auditing on the administrative and financial management of agribusinesses in Sánchez Ramírez province, surveying all 10 rice mills established there regarding the use of audited financial statements, profit distribution, employee bonuses, income tax payment, loans, and financial disclosure. Companies not currently using external auditing are encouraged to adopt it given its benefits; mills that do not base tax payments on audited statements are advised to do so to avoid future legal exposure; and mills are urged to base employee bonuses on audited results to ensure fair distribution.

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