How often must a corporation's financial records be audited, according to best practices?

The best practice for auditing a corporation's financial records is to conduct an audit once a year. Annual audits are essential as they provide a comprehensive review of the financial health of the corporation, ensuring compliance with accounting standards and legal requirements. This regular auditing helps maintain transparency and builds trust among stakeholders, including shareholders, employees, and clients.

By conducting an audit annually, a corporation can identify any discrepancies, improve internal control processes, and ensure that financial statements accurately reflect the company's operations. This frequency aligns with many regulatory frameworks that require public companies and larger private entities to have their financial records audited on an annual basis.

Auditing every quarter, while beneficial for some organizations, is not a standard requirement for all corporations, making it less feasible for many. Auditing only when required by shareholders can lead to gaps in financial oversight, potentially risking the organization's integrity. Lastly, auditing every two years fails to capture timely information needed to make informed business decisions.