ADVANTAGES OF AUDIT OF FINANCIAL STATEMENTS

These are the advantages of audit of financial statements

1	Safe guard to person having financial interest in entity
2	*Moral check on employee*
3	Helps in setting liability and negotiation
4	Useful for settling trade disputes
5	Help in the detection of wastages and losses
6	Books of account and allied records have been properly kept.
7	Appraisal function
8	Settlement of accounts
9	Government may require audited and certified statement

Advantages of audit of financial statements

1	Safe guard to person having financial interest in entity	It safeguards the financial interest of persons who are not associated with the management of the entity, whether they are partners or shareholders,bankers, Fl's, public at large etc. Pic of silent partners,shareholders,Bankers,fiis,pubic Sakshi creates it
2	Moral check on employee	It acts as a moral check on the employees from committing defalcations or embezzlement. Show employee stealing cash, pen ,other stationery
3	Helps in setting liability and negotiation	Audited statements of account are helpful in settling liability for taxes, negotiating loans and for determining the purchase consideration for a business.
4	useful for settling trade disputes	These are also useful for settling trade disputes for higher wages or bonus as well as claims in respect of damage suffered by property, by fire or some other calamity. Ex-Now see what will u do in this situation. Show factory me aag lag gai and stock jal gaya
5	Help in the detection of wastages and losses	An audit can also help in the detection of wastages and losses to show the different ways by which these might be checked, especially those that occur due to the absence or inadequacy of internal checks or internal control measures.
6	Books of account and allied records have been properly kept.	Audit ascertains whether the necessary books of account and allied records have been properly kept. Show the pics of necessary books of accounts ,allied records,Allied bole to supporting records.
7	An appraisal function	As an appraisal function, audit reviews the existence and operations of various controls in the organisations and reports weaknesses, inadequacies, etc., in them.
8	settlement of accounts of partners	Audited accounts are of great help in the settlement of accounts at the time of admission or death of partner
9	Government may require audited and certified statement	Government may require audited and certified statement before it gives assistance or issues a license for a particular trade.