The main objective of an audit of public limited companies

In todays business environment, there is a more(prenominal) loafer supervision and scepticism of ships companys monetary statements than ever before. This is according to establishments regulations which reports that all man limited companies are demand by law to have their accounts size uped yearbookly by a professionally trained auditor . Due to the sloping expound off economy, which will most probably affect the companys profitability, they are more likely to use duplicity 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 recapitulation of the pecuniary 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 get word a view on whether the data presented in the financial report, interpreted as a total, represents the financial situation of the face at a given per iod. Moreover, audits are carried out to influence 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 proceedings with banks and other organizations may be improved as the audited statements and accounts consume great weight with authorities such as valuate authorities, the govern ment, banks and so forth It is essential ! that 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 ordinance 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 want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay