There are many uses of the audited financial statements. Some common uses include submission to the relevant authority, such as the company and tax offices. These two parties concerned of this data. Other interested parties, investors, creditors and shareholders of the company include well.
So, what are the purposes of the audited accounts and the reason is that there must be reviewed before it is presented or submitted to the relevant stakeholders? Let us discuss some of the reasons as follows.
One of the main goals of the audited accounts is to provide accountability and accuracy as well as the financial credibility for business. This is because all entities, whether publicly owned or a privately owned full preparation of the accounts on the financial performance and position.
refers audit report is qualified, the financial statements are free of material stomach bug to work, I found that to be true and present fairly in accordance with generally accepted accounting principles.
Another important reason for the existence of audited accounts is that it gives interested parties such as bankers and shareholders an unbiased opinion with respect to the credibility and accuracy of the accounts prepared by the company.
interested private banks used audited financial statements to evaluate the financial performance and financial position of an entity for the purposes of the loan approval Parties. Therefore, it is always mandatory for businesses to provide audited financial statements to banks if they need help from banks.
In short, the audited financial statements used by many of the parties. Thus, it is important for a business to keep accounting records properly and at the right time.
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