metion it types and important of auditor
Answers
Explanation:
Audit report is the report that contain the audit's opinion which is issued by ... This kind of report , only inventories that mention are matters. ... This is probably the most important point.
Answer:
Importance of Auditing
Audit is an important term used in accounting that describes the examination and verification of a company’s financial records. It is to ensure that transactions are represented fairly and accurately.
Also, audits are performed to ensure that financial statements are prepared in accordance with the relevant accounting standards. The three primary financial statements are:
Income statement
Balance sheet
Cash flow statement
Financial statements are prepared internally following relevant accounting standards, such as International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP), and are developed to provide useful information to the following:
- Shareholders
- Creditors
- Government entities
- Customers
- Suppliers
- Partners
Financial statements capture the operating, investing, and financing activities of a company through various transactions that are recorded. Because the financial statements are developed internally, there is a high risk of fraudulent behavior by the preparers of the statements.
Without proper regulations and standards in place, preparers can easily misrepresent their financial positioning to make the company appear more profitable or successful than they actually are.
Auditing is crucial to ensure that companies represent their financial positioning fairly and accurately, and in accordance with accounting standards.