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ADVANTAGES OF AUDIT:
Audited account are detected as an authentic record of transaction.
Errors and frauds are detected and rectified.
It increases the morale of the staff and thus it prevents frauds and errors.
Because of his expertise the auditor may advise on various matters to his clients.
An auditor acts as a trustee of his shareholders. Hence he safeguards their financial interest.
For taxation purpose auditing of account is amust.
In case of any claim is to be made from the insurance company only audited account should be submitted.
Even in case of partnership firm auditing of accounts helps in the settlement of claim at the time of retirement/death of a partner.
Auditor account helps in managerial decisions.
They are useful to secure loan at the of amalgamation, absorption, reconstruction etc.
Auditing safeguards the interest of owners, creditors, investors, and workers.
It is useful to take certain financial decisions like issuing of shares, payment of dividend etc.
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