Thursday, March 21, 2019

2.1 What is the importance of having the accounts audited by an independent auditor?

Advantages of having the Accounts Audited by an Independent Auditor are:
(i) It safeguards the financial interest of persons not associated with the management like partners or shareholders.
(ii) It acts as a moral check on the employees from committing fraud.
(iii) It is helpful in settling tax liability, for Loan, and for Determination of purchase consideration for merger/sale.
(iv) It is also helpful in settling trade or labour disputes for higher wages/bonus.
(v) It helps in detection and minimizing wastages and losses.
(vi) It ensures maintenance of adequate books and records, statutory register etc.


Thanks...:)

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