What is an integrated audit?

An integrated audit is a comprehensive audit that combines a company's financial statements audit with an audit of its internal controls over financial reporting. This type of audit provides a holistic view of a company's financial reporting process, ensuring the accuracy and reliability of both the financial statements and the underlying controls.

Integrated audits are typically conducted by external auditors who are responsible for evaluating the effectiveness of the company's internal controls and assessing the risk of material misstatement in the financial statements. This type of audit is required for publicly traded companies in order to comply with regulatory requirements, such as the Sarbanes-Oxley Act.

By integrating the financial statements audit with the internal controls audit, companies can identify and address any weaknesses or deficiencies in their controls that could impact the accuracy of their financial reporting. This helps to enhance the overall quality and integrity of financial information provided to stakeholders, such as investors, creditors, and regulators.

Overall, an integrated audit provides a more thorough and in-depth assessment of a company's financial reporting process, helping to enhance transparency, accountability, and investor confidence.