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Why is audit required?

Updated: 4/28/2022
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11y ago

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to reveal the financial performance of an organization, help accountant conform to the legislation and standard of account and making board of directors aware of the financial positions.

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Q: Why is audit required?
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How long do you have to file tax return?

Forever. If you don't file (April 15 due date), then you are perpetually open to audit/assesment for that period and your return is always required.


Mention three stakeholders who would be interested in the audit reports?

mention three stakeolders that will be intrested in the audit report


What are the legal restrictions of starting a partnership firm?

A Partnership firm is not subject to excessive legal restrictions; therefore it enjoys freedom in administration. It is not required to file its annual accounts with the Registrar each year unlike a Limited Liability Partnership or Company. It can be easily dissolved. Any partner can give 14 days' notice to other partners and dissolve the firm with the consent of other partners. There is no requirement for audit of the accounts of a partnership firm annually as a Partnership firm is not required to file audited financial statements with the Ministry of Corporate Affairs each year. However, tax audit may be required for a Partnership firm if the turnover exceeds prescribed limits.


Whats called a person facing Audit from Auditor?

A person facing an audit is called a pre-clear. This means that they have not been cleared yet by the auditor.


Define cost audit?

The purpose of a cost audit is to verify all cost accounts and ensure that the company is following the predefined cost accounting plan. This type of audit focuses on every department within an organization to ensure that costs are being managed properly.

Related questions

Is audit required?

A Partnership firm is not required to file audited financial statements with the Ministry of Corporate Affairs each year. Therefore, audit of financial statements is not required. However, tax audit may be required for a Partnership firm if the turnover exceeds prescribed limits.


What is the process of preparing an audit?

The process of preparation for audit depends on the kind of audit to be performed, it's objective and scope. The scope of the audit is key to the planning process. The planning required or statutory audit is different from internal audit; it also differs from forensic audit?


What documentation is not required for an audit in accordance with generally accepted auditing standards?

Which of the following documentation is not required for an


Are companies required to have audit committees?

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What is audit planning memorandum?

Audit Planning MemorandumIt is a document prepared by the auditor setting out those information obtained during the audit planning process and those decision taken as a result of the audit planning efforts, which are required by those audit staff who will be engaged on the audit assignment. It is a written document, which set out the information obtained and decision reached as a result of audit planning effort


What is the difference between statutory audit and non -statutory audit?

Statutory audits are reviews of a business or governments financial records as required by law. Non-statutory are audits not required by legal statute but needed because of some other reason. A non-statutory might be needed if some issue is brought to light such as an irregularity in the way business is being done or perhaps in the case where some type of intentional actions such as an incompetent accountant or even embezzlement was discovered, to find out the extent of the issue.


Is audit required for a Partnership firm?

It is not necessary for Partnerships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.


Can audit teams share information?

An audit team can share information to some extent. they can share information to the following members/factors: Government( if required) Directors of the organization Accounts department of the organization


Why would one have to have an SAS 70 audit?

The SAS 70 audit is required for service organizations or service providers. It centres around controls over information technology and ensures the safeguard of customers data.


What do the fieldwork standards under GAAP require?

The fieldwork standards address what is required when actually performing the audit work.


In Maine is a condominium association required to have an annual audit performed?

Read your governing documents regarding mandatory audits. Depending on the size of the community in number of units or annual income from assessments, the membership may be able to vote against having an annual audit. Also, review the Maine state law governing condominiums and non-profit corporations -- if your association uses that legal construct -- and determine what audit is required.


Differences between IS Audit nad Traditional Audit?

what is the differences between IS Audit and traditional Audit?