What is the role of external audits in asset protection?

The role of external audits in asset protection focuses on assessing the effectiveness of loss prevention strategies. External audits are conducted by independent professionals who evaluate a company's practices, policies, and procedures related to asset protection and risk management. By doing so, external audits provide an unbiased perspective on how well the existing loss prevention strategies are working to safeguard assets against theft, fraud, and other risks.

These audits involve analyzing financial records, inventory data, and loss reports to identify vulnerabilities or areas of improvement. The insights gained from this assessment help organizations refine their loss prevention strategies, implement necessary changes, and ultimately enhance their asset protection efforts. The findings can lead to more effective policies that reduce loss and improve overall financial health.

In contrast, other options such as increasing employee workload, improving customer service training, and evaluating market competition do not align with the primary focus of external audits regarding asset protection. These aspects, while important in a business context, are not the central purpose of what external audits aim to achieve in the realm of loss prevention.