6 advantages of independent audit

Advantage of independent audit

  • Independent audits are important for inspiring and maintaining users trust because they demonstrate that the organisation is committed to financial transparency and accountability.
  • It helps the management in detection errors and frauds
  • It helps the management in obtaining loans from banks and other financial institutions as the audited statements are relied upon.
  • It builds up the reputations of the business.
  • Auditors can give concrete suggestion regarding improvement of business on the basis of their findings in record.
  • Audited financial statements help the board of director have more confidence in the organization’s financial statements because they based on an analysis by an objective third – party.

2 thoughts on “6 advantages of independent audit”

  1. Pingback: Contribution of the production function to the success of a business or quality indicators - ACCOUNTING FREE RESOURCES

  2. Pingback: meaning and examples of insurable and non-insurable risks - ACCOUNTING FREE RESOURCES

Leave a Comment

Your email address will not be published. Required fields are marked *