Benefits of Audit to Sole Trader Coursework - 275 Words

Benefits of Audit to Sole Trader and Public and Private Companies (Coursework Sample) Content: BENEFITS OF AUDIT TO PUBLIC LIMITED COMPANY, PARTNERSHIP AND SOLE TRADER * Advantages Of Performing An Audit To A Sole Trader * The sole trader is assured of his accounts maintained properly without any defraud from his employees. An example is a landlord who is assured of proper control over his vast property. * Auditors being appointed help to check on the account of agents who act on behalf of the sole trader. This helps the sole trader to check with ease accounts of his agents. * Ensures proper assessment of wealth tax to a sole trader. This helps the sole trader manage tax payments from his large establishment. * Audited accounts of a deceased sole trader help executors and administrators have a base for preparing death duty accounts. * Advantages Of Performing An Audit To A Partnership Business * Some partners are active in affairs of the firm while others act as financing partners. Financial partners are satisfied of no fraud if their accounts are fully audite d. * An audit helps prevent financial dispute within a partnership business in cases where any one partner is in charge of the accounts. * Audited accounts help in transfer of goodwill on death of a partner or on admission of one or more partners to the firm. * Partners can manage tax obligations with the help of an audit for better management. * Advantages Of An Audit To A Public Limited Company * An audit protects interests of shareholders who are separate from management of the company. This is especially for minority shareholders who have little say for the company. * User...