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Hi OpenTuition,
First time posting on this board.
I am curious if anyone can help me think of the users of the audit report other than shareholders.
I am aware it is a validation of the financial information, and that shareholders can rely upon the opinion of the audit report either with judgement or without (in most cases, as an assumption).
I am really curious as to which other stakeholders such as employees, banks, pensioners, etc. make of the audit report and how they can use it.
Many Thanks
Everyone relies on Audit Financial report, I can barely think of anyone that will rely on non audit Financial report besides Management itself for internal purposes but All External parties rely on Audit Financial report.
Government – they will rely on audit FR (Financial report) because maybe for tax purposes or/and statistical use. Now if the FR isn’t audited how can government know that the information is correct?? Management can put any figure or any amount and deceive actual picture of the company.
Same goes for banks – they need FR so know whether company is worthy and liquid,so they can lend them the money and there are many other reasons… again audited FR assures reasonableness of the information.
Even stakeholders like students would rely on audited financial report for making their University projects and so on.
Regards
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