Question

(A) Explain what is the job of an independent auditor.

(B) Explain why companies should file their financial statements accurately and on time.

Answer 1

(a) Independent Auditor- Let us first undestand the meaning of independent auditor before knowing his jobs.

Independent auditor is the auditor appointed by an organisation for auditing of financial statements with objectivity.

Here are job of an external auditor-

1. Review the financial statements and make sure they are free from error.

2. Check out all the accounting standards and policies are followed in Financial statement preparations.

3.Ensure sufficient audit evidence are gathered to provide an assurance on financial statements.

4. comment on the internal financial controls of an organisation.

5.Report the audit findings

6. Give the recommendations for improvement in system of an organisation.

(B)

Here are the reasons why company should file their financial statements timely and accurately:

1. To Assess the path of business: to know about your business is well going or not and how its peforming in comparison to competitives in the maket.

2.Build Image: Financial Statements main users are investor(Shareholders) to know about their returns and risks. if a business filling timely financial statements it would surely build a good image in mind of investors.

3.opportunity for growth : If a Buisness Filling accurate records, it would help it to get the raised funds from lendes in the market and expand the business.

4.Help in Tax audits and Tax payment: timely financial reporting also help in timely tax payments and avoiding penalties due to any late payments of taxes and tax audit reports.