Why is it important to audit financial statements.
This is important because banks, lenders and outside investors will be skeptical of financial statements prepared by the company accountants. Of course, the company will protect its interests, and show the best results in the profit and loss account compared to actual indicators.
That is why a third independent third-party company is hired. It gives sufficient confidence that the financial statements will not contain significant errors and fraud.
Who needs a financial audit:
- Large non-profit organizations;
- Publicly traded companies;
- Enterprises seeking to take particularly large loans;
- Companies that receive funding from federal or state authorities.