Advantages Of Audit
Auditing has become a compulsory task in the business organization. All the organizations like business, social, industries and trading organizations make audit of books of accounts.
One of the biggest advantages of audit that it offers assurances to the owners, investors, shareholders etc. The owners of the business will be assured about the accuracy of their books of accounts. Moreover, audit helps in the detection and prevention of errors and frauds, as it creates a fear to be discovered.
In addition, an effective audit helps organisations in the following ways:
- To obtain a loan: Financial institutions provide loan on the basis of audited financial statements.
- Facilitates the sale of business: On the basis of valuation of assets and liabilities, businessman can sell his business. It helps to determine the price of business.
- Helps to assess tax: Tax authorities assess taxes on the basis of profit calculated by the auditor.
- Provides information about Profit Or Loss: The owner of the business can get information about profit or loss after auditing the books of accounts.
- Helps to prepare future plan: All the audited statements remain true and correct. Such true and correct account helps to prepare for the future plans.
- Increase credibility and confidence of stakeholders: banks, creditors, investors, can rely on audited accounts with more confidence.
Aside from the importance of the legal requirements for a statutory audit, the undertaking of the audit itself provides important and valuable insight. An audit determines whether an organisation is providing a true and fair view of its financial performance and position, which on its own is something any organisation wants to achieve.
PHS & Partners’ team of professionals are focused on delivering the best Audit & Assurance to every company and group of companies to minimize tax exposure / liability without any uncertainties.
Contact us to help you find out how you can best handle your business regarding small business budgeting and any other services we provide.
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