Explain the need for auditing.

Question

Accepted Answer

Auditing is essential to ensure accuracy, reliability, and integrity of financial information.

Auditing helps to detect and prevent fraud and errors in financial statements.
It provides assurance to stakeholders that the financial information is accurate and reliable.
Auditors evaluate internal controls to ensure compliance with laws and regulations.
Auditing helps to improve operational efficiency and effectiveness.
It enhances the credibility and trustworthiness of the organization.
Examples: External audits conducted by independent CPAs, internal audits performed by company employees.

Accepted Answer

The audit helps in the detection and prevention of errors and frauds. The audit helps in maintaining the records and verification of books of books of accounts. The independent opinion of the auditor is extracted through auditing which is extremely essential for the management of the company.

Explain the need for auditing.

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