Investor / Lenders or creditors take decisions based on the audited financial statements of a company.
The review of financial statements should be conducted by an industry expert possessing CA/ CPA qualification.
Strong Audit eliminates the chances of any fraud or financial misapplication in business.
Purpose & Objectives of Auditing Financial Statements
The purpose of carrying statutory audit of a company to rely upon the opinion on the truth and fairness of financial statements expressed by a CA/ CPA
Financial statements are the primary attributes of responsibility on the management of company and performance of a company can be assessed only from audited financial statements. The Management of the company deemed to be responsible for the timely preparation of financial statements. Investors have to rely on the independent opinion expressed by a CA/CPA.
Audited financial statements provide a reasonable assurance for its users to establish confidence on the information, report, and performance of the company. Reliability of financial statements is not only necessary for the investors or management of the company but also tax authorities, banks, venture capital firms.
Financial audit is deemed to provide a reasonable' assurance over the accuracy, truth, and fairness of financial statements.
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