The Purpose of Audit

When the managers report to the owners or shareholders and stakeholders there is the likelihood that they will try to paint a picture that they delivered as agreed with the stakeholders or shareholders. The reports are likely to:

  • Have misstatements
  • Have misleading information
  • Contain Errors
  • Conceal fraud
  • Fail to disclose all relevant information

All these problems and other may be solved by appointing an independent qualified auditor to go through the reports and financial statements.
Most business have expanded to extent that they very large operating as multinational. The complex operations of these multi – nationals need to be summarized by a very qualified person who is  conversant with accounting producers across boundaries. The financial statements are required to
conform to international accounting standards issued by IASC. It is of paramount importance that the financial statements are scrutinized and examined to ascertain that they conform to the requirement of the international accounting standards.

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