What is leak detection in finance? Leak detection refers to the process of identifying and repairing financial leaks, which are errors or discrepancies that can cause a company's financial statements to be inaccurate or misleading. Leaks can occur due to various reasons such as accounting errors, fraud, or manipulation of financial data.
Leak detection is crucial for maintaining transparency and credibility in financial reporting. It helps to prevent financial losses and reputational damage by identifying and correcting errors early on. Additionally, leak detection can also help to ensure compliance with regulatory requirements and industry standards.