How does regular auditing contribute to a company's overall health?

Regular auditing plays a crucial role in contributing to a company's overall health by ensuring compliance with laws. Compliance audits verify that the organization adheres to applicable regulations and standards, which helps mitigate legal risks and prevents potential fines or penalties. This adherence safeguards the company's reputation, builds trust with stakeholders, and fosters a culture of accountability within the organization.

Additionally, regular audits can reveal areas where the company might be vulnerable to risks, such as fraud or financial mismanagement, thus allowing for timely corrective actions. When a company demonstrates robust compliance efforts, it not only enhances operational integrity but also instills confidence in investors, customers, and regulatory bodies.

While other options may hint at aspects related to auditing, they do not directly connect in the same vital manner to the overarching concept of protecting and enhancing the company's health through legislative compliance. For instance, increasing employee workloads or creating more paperwork could lead to inefficiencies rather than improvements in health, and while improving employee engagement is desirable, it is not a primary function of regular auditing.