Business Studies, asked by ramilatharu2008, 1 month ago

Why is financial audit important?Give reasons.​

Answers

Answered by DARKIMPERIAL
8

Answer:

The purpose of auditing is to provide an open minded independent examination of the financial statements, which increases the profit and reliability of the financial statements created by management, thus increasing user confidence in the financial statement, reduce investor risk and accordingly reduce the costs.

Answered by anujmeena2306
1

Explanation:

Importance of Auditing

It is to ensure that financial information is 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.

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