The main objective of an audit of public limited companies

In todays business environment, there is a to a greater extent arrant(a) supervision and scepticism of phoners monetary statements than ever before. This is according to authoritiess regulations which reports that all man limited companies are involve by law to have their accounts analyseed yearbookly by a professionally trained auditor . Due to the sloping pad off economy, which will most probably affect the companys profitability, they are more likely to use takeoff severalize to deceive the public as well as the law. So, by examining their pecuniary books often, it minimizes the possibility of manipulation. To start with, audit refers to the watch of the financial report of a firm (as shown in the annual report) by someone who is not associated with the firm. The aim of an audit is to don a view on whether the data presented in the financial report, interpreted as a total, represents the financial situation of the system of rules at a given period. Moreove r, audits are carried out to find oneself the authenticity of information, and also provide an appraisement of a systems internal control. Having annual accounts audited scum bag also guarantee to some new(prenominal) parties much(prenominal) as suppliers, bankers, lenders or other liabilities as to the reasonable exactitude of the financial statements filed.

Furthermore, there are many benefits by auditing, for example, the legal proceeding with banks and other organizations may be improved as the audited statements and accounts submit great weight with authorities such as tax income authorities, the governme nt, banks and so forth It is essential th! at relevant accounting and auditing standards as well as relevant regulation are interpreted into consideration when perform the audit of the financial statements of an entity. This ensures that the entity complies with relevant canon and that its financial lay is in line with appropriate standards. The audit of a public limited Company is even more important as public limited Companies are associated with...If you necessity to get a full essay, order it on our website: BestEssayCheap.com

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