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identify the main user of audit report and explain the use that each of them make of of an audit report.
main users of audit report are shareholders or members of the company. This report is strictly for internal use by them and the auditor doesn’t recommend reliance on it by external parties. Financial statements have multiple users, is what I understand.
main users of audit report are shareholders or members of the company. This report is strictly for internal use by them and the auditor doesn’t recommend reliance on it by external parties. Financial statements have multiple users, is what I understand.
main users of audit report are shareholders or members of the company. This report is strictly for internal use by them and the auditor doesn’t recommend reliance on it by external parties. Financial statements have multiple users, is what I understand.
thank u Musema for the reply. but i would like to know how do they(shareholders and member of the company) make use of that audit report. could u plzz help me on this…..
Audit report? You taking about external auditor’s audit report and not internal report prepared by the internal audit dept/internal auditor, right?
Report prepared by internal audit is a private report for the use of the company and management. It’s not made public.
But external auditor’s report is made public so that stakeholders could benefit from it, like shareholders, potential investors, banks, creditors etc.Shareholders : to see how the company is progressing and the money they’ve invested is properly utilised and they getting properly calculated dividend according to the profits and revenues earned by the company etc.
Potential investors : would it be of any worth if they invest in the company? would they get high divedend as compared to other companies? Is it a risky company,? etc etc.
Creditors : reasons to have the knowledge about the company could be many, one of them could be for wanting to know how well the company is doing? If we accept the company’s order will it be able to pay us back on timely basis or according to the terms and wouldn’t go bankrupt and doesn’t have going concerns issues.
Same goes for the bank, for lending and borrowing purpoeses, bank would want to know company’s liquidity condition etc..
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