Question

Advantages of audit of a sole proprietor

Answer 1

1.The trader is assured of his accounts being properly maintained and his expenditures properly vouched.

2. He is also assured of not being defrauded by any of his employees or agents. He can also come to know if any frauds committed by any of his employees.

3. Audited accounts are considered reliable for income tax purposes, wealth tax purposes, estate duty, and other claims.

4. Audited accounts may become the basis for settlement of final accounts.

5. Comparing of figures of different periods is made possible.