In the presence of audit the general public in general and the proprietors of the business in particular are placed before them reliable statements of accounts indicating the true financial position of concern and they can collect results from it and feel satisfaction about it. The interest of the public and shareholders is safeguarded in presence of audit; otherwise they may have been exploited by the management. This is main reason for which audit has been made compulsory for the public limited companies.
The prospective investor can easily judge the position of the company by going through the audited financial statements and can make the decisions to invest in or not. In the presence of audited accounts, the tax authorities can easily assess the income and thus pass assessment orders. The early assessment passed at an early date will lead to early assess the income and thus pass to the assessment orders.
The government can check the economic progress of the various companies by going through the audited accounts and thus can know the overall economic position of particular kind of business in country and thus can take proper action for that. The joint stock companies have played big roles in boosting up the economic progress of a country in the modern age. The successful operation of the companies would have not been possible without presence of the audit.
The prospective investor can easily judge the position of the company by going through the audited financial statements and can make the decisions to invest in or not. In the presence of audited accounts, the tax authorities can easily assess the income and thus pass assessment orders. The early assessment passed at an early date will lead to early assess the income and thus pass to the assessment orders.
The government can check the economic progress of the various companies by going through the audited accounts and thus can know the overall economic position of particular kind of business in country and thus can take proper action for that. The joint stock companies have played big roles in boosting up the economic progress of a country in the modern age. The successful operation of the companies would have not been possible without presence of the audit.