Advantages of independent audit
- Independent audits are important for inspiring and maintaining users’ trust because they demonstrate that the organisation is committed to financial transparency and accountability.
- It helps the management in the detection of errors and fraud
- It helps the management in obtaining loans from banks and other financial institutions as the audited statements are relied upon.
- It builds up the reputation of the business.
- Auditors can give concrete suggestions regarding the improvement of business on the basis of their findings in the record.
- Audited financial statements help the board of directors have more confidence in the organization’s financial statements because they are based on an analysis by an objective third – party.