Question

How does the Government audit one’s business financial statement and what is the reason why they audit, please explain?

Answer 1

Financial statements area unit the statements that area unit ready and given within the prescribed type thus on change higher cognitive process by stakeholders. once the monetary statements is examined by freelance auditor, monetary statements get audited. commercial enterprise audited monetary statements by the govt. is vital thanks to varied reasons.

Audited statements adds quality to the according monetary position and business performance. It ensures that prescribed general accepted accounting rules area unit followed whereas making ready statements. voters of the country believe on the system of presidency of their country, so, by commercial enterprise audited statements it helps Stakeholders to create au courant decisions. Audited monetary statements assurance that public funds and resources are utilized in accordance with the law, managed to sensible impact and properly accounted for. additionally, audits determine problems which might assist public bodies in rising monetary management, governance and deportment within the conduct of public business. Audited monetary statements area unit the indication of effective management of public funds.

CFOs area unit to blame for managing monetary activities of the corporate and to confirm monetary records area unit so as. CFO's role isn't solely restricted to accounting, they conjointly facilitate corporations to create strategic choices by taking an energetic role in monetary analysis and management. no matter info, that chief financial officer thinks is vital for the stakeholders to require au courant choices, is needed to induce mirrored in monetary statements. By being proactive, {cfo|chief monetary officer|CFO|corporate executive|business executive} takes financial choices keeping in mind the longer term uncertainities. CFOs align their ways or choices with the vision and priorities of the corporate. Hence, they target presenting info in monetary statements in an exceedingly means that might result in fulfillment of long run objectives of the corporate. Moreover, info within the monetary statements ought to be given by applying usually accepted accounting principles.

-------------------------------

Hope this will help, please comment if you need any further explanation, Please Encourage us by Up Voting the Answer which is Very Helpful to us. Thank You!
-------------------------------