Apart from the statutory requirements, there are many reasons why an audit is carried out. Banks and other financial institutions often request for audited accounts, as one of the document needed, when appraising the creditworthiness of applicants seeking credit facilities. The serious investors need the audited accounts in order to have a better picture of a company’s potential before deciding on a venture with the company. Likewise, major suppliers need them to gauge the financial standing of the company before agreeing to supply goods on credit. These are but some of the reasons and the list can go on.
Auditing is structured in such a manner that clients are made aware of their company’ s strength and weaknesses and can therefore confidently take the appropriate course of action be it remedial or planning for the future.
