The main objective of an audit of public limited companies

In todays business environment, there is a more stern supervision and scepticism of companys monetary statements than ever before. This is according to governments regulations which reports that all man limited companies are needed by law to have their accounts audited annually by a professionally trained auditor . Due to the sloping round off economy, which will most probably affect the companys profitability, they are more likely to use fraud severalize to deceive the public as well as the law. So, by examining their pecuniary books often, it minimizes the possibility of manipulation.
To start with, audit refers to the inspection of the financial report of a firm (as shown in the annual report) by someone who is not associated with the firm. The aim of an audit is to acquire a view on whether the data presented in the financial report, interpreted as a total, represents the financial situation of the organisation at a given period. Moreover, audits are carried out to ascertain the authenticity of information, and also provide an appraisement of a systems internal control. Having annual accounts audited scum bag also guarantee to some new(prenominal) parties such as suppliers, bankers, lenders or other liabilities as to the reasonable exactness of the financial statements filed.




Furthermore, there are many benefits by auditing, for example, the transactions with banks and other organizations may be improved as the audited statements and accounts hold great weight with authorities such as tax authorities, the government, banks and so forth
It is essential that relevant accounting and auditing standards as well as relevant regulation are taken into consideration when perform the audit of the financial statements of an entity. This ensures that the entity complies with relevant legislation and that its financial lay is in line with appropriate standards.
The audit of a public limited Company is even more important as public limited Companies are associated with...If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper