What is Auditing Importance
Following is important list of auditing, which describes auditing importance in different aspects:
- Audit satisfies the owner regarding the operating of the business operations and also the functioning of its numerous departments.
- The audit helps within the detection and interference of errors and frauds.
- The audit helps in maintaining the records and verification of books of the books of accounts.
- The freelance opinion of the auditor is extracted through auditing that is extraordinarily essential for the management of the corporate.
- The audit establishes an ethical check on the workers of the business so they became conscious of not committing any irregularity. This makes the workers additional active and accountable.
- Audit protects the interests of the shareholders within the case of company by reassuring them that their accounts square measure being managed properly and their interests will not suffer underneath any circumstances.
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- Audit creates confidence among stakeholders like creditors, debenture holders, and banks, etc.
- Audited statements guarantee compliance with legal necessities like listing necessities of securities market etc.
- Auditing reinforces and strengthens control and provides suggestions necessary within the control system.
- Audited monetary statements modify easy accessibility to loans as a result of it provides a crystal clear image to the banks.
The basic function of auditing is to find out the legitimacy of books of accounts ready by the accountant. It is a well known myth that “where the work of accountant ends, the audit begins to work out actuality and honest image of such accounts.