Which of the following techniques enhances financial statement reliability?

Regular audits enhance financial statement reliability because they involve systematic examination of financial records and statements by an independent entity. This process helps ensure that the financial information presented is accurate, compliant with accounting standards, and free from material misstatement, whether due to error or fraud. Auditors evaluate internal controls and assess the processes by which financial statements are prepared, thereby providing an objective assessment that adds credibility to the reported financial performance. By regularly engaging in audits, organizations can identify weaknesses in their financial reporting and address them proactively, ultimately fostering trust among stakeholders such as investors, regulators, and customers. The process of auditing not only enhances transparency but also serves as a critical control in mitigating risks associated with financial misreporting.