OBJECTIVESs of statutory audits

An statutory audit offers the following OBJECTIVES

To enhances the trustworthiness of published financial statements.
To ensures the management that the ha!e performed their statutor duties
appropriatel.
To gi!es assurance to management that the ha!e complied with non"statutor
re#uirements$ such as corporate go!ernance re#uirements .
To gi!es !iew on the efficac of internal controls. %here internal
controls are wea& or inade#uate$ the auditor will pro!ide recommendations for
impro!ement. This will help management in reducing ris& and impro!ing the
performance of the compan. E!en where a statutor audit is not re#uired$ for e'ample
due to small compan statutor e'emption limits$ an audit will boost the trustworthiness
of published financial statements. This ma be important for potential in!estors to the
compan. (otential in!estors$ such as ban&s$ ma insist on the compan ha!ing an audit
as a precondition for lending mone.