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Why are audited results much less than unaudited results for most of companies?

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Question added by Rahaf Masri , Account Sales Director , MT3 Digital
Date Posted: 2015/06/08
FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

Simply

* - Because there are possibilities to amplify the results in order to satisfy the administration or owners 

* - Also treatment  faults  may be did not discover

* - Inaccurate and unguaranteed results

حسين محمد ياسين
by حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

agree with answers >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

There are two ways by which I can assume this question is about , due to lack of specifications. 

  1. I assume that you are asking as to why the no.of audited results are less than the no.of unaudited results that come out and get published. This is because while almost all companies are mandatorily required to undergo the process of Audit, it is not compulsory for them to publish those audited results in any medium of communication. Whereas the companies that publish unaudited results are listed in Stock exchanges and are by law, required to put out their unaudited results for the public. So that contributed to the perception that audited results are less in number than unaudited results. That is, except the listed companies , other companies need not mandatorily publish their results and so they choose not to.
  2. Now, if you are talking about the amount involved between audited and unaudited results, I would say that it is because , unaudited results do not mean that they have not seen the face of any auditor. It means it was subject to selective audit. That is they undergo something called limited review that checks and verifies only the important issues in the financials. Whereas when the audit actually happens, every item on the financial statement is checked and verified thoroughly. And hence differences are bound to arise.

Hope this answers your question.

Mrinal Deb
by Mrinal Deb , Manager - Finance and Accounts , Comfort Diagnostic & Nursing Home

Not too much care followed by the accountant  & also the lack of professional knowledge those who accounts for daily transactions even when they finalize it.

Shamseer KM
by Shamseer KM , Accounts and Admin Payroll , KBM Group

It is depend upon the

-           --- Different audit methods used by the auditor (Test check, Trial audit, Audit in dept etc...)

-          --- Lack of professional knowledge

-          --- Lack of availability of audit evidence

 

-          --- Irresponsibility of the audit staff or the auditor

Abdelhafiz Elkhidir Sidahmed Mohammed Kheer
by Abdelhafiz Elkhidir Sidahmed Mohammed Kheer , مدير التدريب والدراسات والبحوث , اتحاد المصارف السوداني

I agree with the answer...................

Bilal Khan
by Bilal Khan , Senior Tax Accountant , Finvesco Limited

repetition or manipulation of information to satisfy its management that the company is progressing somehow with good perspectives. 

Mohammed  Mohammed
by Mohammed Mohammed , Senior SAP Consultant , Abyat Mega Store

Companies always tries to show huge profit in their profit and loss ac to get additional source of finance from the market. Where as auditor is a professional independent .He has to sign on the audited results that they reflect the true and fair view of  position of the company.

To ensure this true and fair view , Auditor check the provision in the light of IFRS and other applicable ACT.  Wherever necessary he recommends to make provision to the management.Provision is direct impact on the profit.

 

 

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