Benefits of Statutory Audits
Investors are more able to rely on the information provided
Management can verify that their systems are sound.
FAU syllabus
Advantages and disadvantages of an audit 6 / 9
Benefits of Statutory Audits
Investors are more able to rely on the information provided
Management can verify that their systems are sound.
Benefits of Statutory Audits
Management are less likely to commit fraud
The business more able to raise finance
The auditor will highlight any deficiencies in their letter to management.
Benefits of Statutory Audits
Management are less likely to commit fraud
The business more able to raise finance
The auditor will highlight any deficiencies in their letter to management.
Drawbacks
Many businesses with a recent clean audit report have subsequently gone out of business.
Not all transactions are checked.
Drawbacks
Many businesses with a recent clean audit report have subsequently gone out of business.
Not all transactions are checked.
Drawbacks
The opinion is based on evidence, often provided by management.
Many controls can be overridden by management
Drawbacks
The opinion is based on evidence, often provided by management.
Many controls can be overridden by management