- Auditing Tutorial
- Auditing - Home
- Auditing - Introduction
- Detection and Prevention of Fraud
- Detection and Prevention of Errors
- Auditing - Basic Principles
- Auditing - Advantages
- Auditing - Limitations
- Auditing - Classifications
- Preparation before an Audit
- Auditing - Audit Planning
- Auditing - Audit Program
- Examples of Audit Program
- Modification of Audit Program
- Methods of Audit
- Duties of Audit Staff
- Auditing - Audit Evidence
- Auditing - Types of Evidence
- Auditing - Audit Techniques
- Auditing - Internal Control
- Auditing - Internal Check
- Internal Check and Auditor
- Auditing - Internal Audit
- Auditing - Audit Sampling
- Auditing - Audit Vouching
- Auditing - Mechanized Accounting
- Auditing - Trading Transactions
- Vouching of Cash Transactions
- Auditing - Vouching of Ledger
- Auditing - Audit Verification
- Depreciation, Reserves & Provision
- Auditing - Capital and Revenue
- Auditing - Audit of Hospitals
- Audit of Educational Institutions
- Audit of Charitable Institutions
- Audit of Clubs & Theatre
- Audit of Sole Proprietary Concern
- Audit of Partnership Firms
- Auditing - Audit of Doctors
- Audit of Electricity Supply Company
- Audit of Shipping Company
- Audit of Co-Operative Societies
- Auditing - Audit of Hotels
- Auditing - Management Audit
- Auditing - Tax Audit
- Auditing Useful Resources
- Auditing - Quick Guide
- Auditing - Useful Resources
- Auditing - Discussion
Auditing - Advantages
Following are the main advantages of auditing for different stakeholders −
For the Owner and Shareholders
Sole proprietor of a business and partners of firm can rely and depend on audited financial statements.
Auditing is helpful for valuation and business settlement at the time of admission of new partner, retirement or death of a partner. This avoids the risk of any dispute in a firm.
Audited financial statement is the only way out for shareholders to judge the performance of the management of the company.
For the Management
Auditing is helpful in detecting frauds and prevention of errors.
It helps to keep the staff vigilant; as eventually the work done by them goes for an audit.
Insurance claim can be easily estimated from audited accounts.
Management can take advantage of expert advice of Auditor in financial matters.
Comparison of financial statements of different years becomes easier.
Assessment of Tax Liabilities is easy.
For the Government
Taxation authorities and all other Government authorities rely on audited financial statements; even the courts accept these as evidence when the situations call for.
For the Creditors
Creditors of an organization also rely on audited financial statements and accordingly grant credit limit to business entities.
For Others
Audited accounts are easily accepted by insurance companies for settlement of claims.
Audited financial statements are acceptable by bank and financial institutions and helpful in getting loans and credit facilities.