Accounting audits enable us to discern whether the Profit and Loss Statement and Balance Sheet of a business concern reflect the actual state of affairs. Auditing the books of accounts allows employers to detect errors or frauds and take measures to prevent them. An auditor with a professional outlook can provide their client with expert advice on various levels of auditing services hong kong, including tax matters, internal checking, internal control, preparation of various reports for statutory authorities, etc.
By auditing accounts, it makes employees more careful and regular in their work, which will lead to fewer instances of errors and fraud. In the case of partnership with hk company formation services, audited accounts provide a basis for settling and resolving partnership disputes and conflicts, and in the case of corporations, audited accounts provide the basis for resolving disputes about bonuses, wages, etc.
Companies claim insurance losses only on the basis of audited accounts when they suffer property damage due to fire or other causes. Audited accounts can be used to borrow funds from banks and other financial institutions since audited accounts authenticate the accuracy of financial statements and books of accounts. The management relies on the audited accounts to make decisions.
The trend in financial activity can be determined by comparing the audited financial statements to their previous years. On the basis of the review, weaknesses are identified, and policies can be developed for the future. By conducting regular audits of the business, interested parties and the general public can develop trust, which can enhance goodwill. Accounts audited at the time of admission to the partnership, retirement, or death of a partner assist in settling the accounts between the partners.