Question

Auditing is luxury for which organisation

Answer 1

Auditing is necessity of big organizations. Auditing is compulsory in case of Private Limited Companies, Limited Companies, Charitable Trusts, Societies, Banks etc. The partnership firms or proprietorship firms can also engage the auditors to have the fair view of accounts.

Hope it helps ........

Answer 2

Answer:

Auditing is a luxury for small businesses.

From the following viewpoint, it is a luxury for ordinary businesses-

The costs and compensation paid for audit work are a waste of money, which lowers profit.

Normal everyday work is interrupted and time is lost during audit procedures.

There is no guarantee that all mistakes and frauds will be found during an audit of the finances.

A businessman has to follow several formalities may find it burdensome.