Statutory audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2015 Dear Experts,
Statutory audit is required for all company, can anyone let me know the object to conduct this audit...

Thanx in Advance

Ankur Garg

Ankur Garg (Expert)
Follow

31 December 2015 The main necessity for conducting the audit of financial statements stems from the fact that the persons responsible for the preparation of financial statements are often different from the owners of large corporations.

Whereas in small owner managed companies, the owners have first hand knowledge of the affairs of their business, management and ownership is normally separate in the case of large companies that often have thousands of shareholders. In large corporations, shareholders appoint directors to run the enterprise on their behalf. This separation of ownership and control creates the need for external audit.

Financial statements are the main source of accountability of management performance by the shareholders. However, as the management is responsible for the preparation of financial statements, shareholders have to rely on external verification by auditors in order to gain reasonable assurance that the accounts are free from material misstatements and can therefore be relied upon to be presenting true and fair view of the affairs of the company.

For more detail check the link below:

https://accounting-simplified.com/audit/introduction/purpose-of-audit.html#sthash.Gjlq4R7T.dpuf

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Vishnu Agarwal

Rajat Khandelwal

Anurag Sharma

Suranjan Das

Sanoj T

Subscribe Now

Statutory audit

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Manager- Finance and Compliance

GST CONSULTANCY

Accountant

CA Final

Senior Executive