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Why having an independent third party performing an audit of financial statements is important.

Why having an independent third party performing an audit of financial statements is important.

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Answer #1

Audits performed by independent third party is necessary as there will be no conflict of interest and the quality of audit findings are best as compared to other audits.

Authorities also mandate third party audits in various cases to verify the real situation or working of an enterprise.

It also build interest and trust of shareholders and stakeholders in the company.

Third party audit is performed by certification body or registrar. Certification to an industry standard instills confidence in their customers that their quality systems meet the requirements of the chosen standard.

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