Key Advantages of Auditing Explained

hello dear students welcome to device commerce and management academy today we'll see advantages of auditing why we have to go for auditing there are many advantages you know that in some organizations like private organizations auditing is not compulsory but in government organization and big organizations it is must and mandatory compulsory but still some organizations though it is not compulsory but still they are going for auditing why because of advantages because of the need and requirement and the benefits what they are finding from the auditing that is making them to go for auditing before going to the subject let me tell you all if you like our topic any subject any lecture if you like it please give a thumbs up if i find 10 000 viewership 10 000 likes i need then only i can say i'm perfect otherwise i feel somewhat dissatisfaction please give a like and don't forget to share this videos because with lots of time and care energy i'm preparing this video especially for you all just before exams also you can just study but i would advise you to study well in advance before exams you have to revise are you getting me now coming to today's topic advantages of auditing there are mainly five types of advantages five types of advanced kinds of advantages so what are those advantages means first one is that for owners of business and shareholders together we are taking for owners of business and shareholders for them what kind of advantages are there owners means who are the owners company owners business owners right and also shareholders shareholders also we call them as owners only for every company who are the owners means shareholders are the owners of the company so what kind of benefits are they getting first thing is that a sole proprietor if a person is sole proprietor then uh he'll be having accuracy of accountancy i'm a sole proprietor but i have a very huge business now i want to know the accuracy of the accountancy i want to know the uh position of the organization whether i'm going towards the profit or loss any kind of errors or mistakes something is happening so that i'll come to know through the auditor through auditing and for sole proprietor proprietor also audited accounts are very much beneficial to take a loan and for auditing purpose for everywhere it is useful for sole proprietor and in the same way for partnership firm partnership firm also they'll be having the same benefits just like sole proprietor audited accounts can be used for income tax purpose and also audited accounts are useful to get the loans these are the quite common advantages for both of them and another advantage for partnership for me is partners are many suppose one worker one partner is active partner another partner is just namesake another partner is sleeping partner but when audited accounts are there it is reliable it is available they'll trust on this accounts everything is going true and fair and there are no errors though there are no frauds that kind of accuracy and reliability so they'll find it in auditing so that is why partnership forms also going for auditing its advantage and also when it comes to the any kind of disputes between the partners as per the partnership act 1932 so the auditor can give them solution auditor can help them to come out of the disputes so this this kind of advantages are there so for the partnership firm in the same way for shareholders who are the shareholders shareholders are the people who purchased the shades from the company they are also having advantage the first advantage is that performance accounts are audited means reliable by looking at the audited accounts they can trust on the performance of the company yeah performance is good audited accounts or companies going for auditing why reliability so they trust they'll come to know exactly the performance of the organization and second thing is that value they shares if accounts are audited then as per the reliability of the accounts they can value their shares also audited accounts means easy no doubt at all so like shareholders shareholders can be confident if accounts are audited reliable information is getting so that their shares are on safe side so that kind of reliability they'll get it these are the advantages for the owners of business and shareholders second thing is that for the management management means who appointed the auditor company owners company board of directors company management what kind of advantages they are finding it first thing is that detection and prevention of errors and frauds first object of auditing this is what we have learned in the very first day of our class right so first of all detection and prevention of errors and frauds what kind of errors are there what kind of rods are there how we can prevent it we got it we came to know then how we can prevent it so that they'll come to this is the main major advantages for the management okay they'll be very confident we are getting it we are finding all the frauds we are finding all the errors and we are coming to know how to prevent it also who is responsible who is making it that accountability that responsibility given to the particular person so that is why this is one of the very big advantage for the management and also alertness in the stuff in any company auditing is going on means all the stuff means accountants accounts department they'll be alert they'll be alert because these accounts are going to be audited if something is going wrong then automatically auditor is going to catch that point he'll be caught by the auditor so that is why they'll be alert so there is the possibility of accuracy in the accountancy reliability you can find it alertness you can find it among the or it's uh among the uh accounts department staff members that you can find it in the same claims due to fire and accident if anything happens in the organization like there is a fire accident or there is a theft early case something is gone wrong then automatically the company has to go to the insurance company now for that if audited accounts are there that insurance company will trust on this audited accounts and they'll give the claim without any delay without further delay they are going to give the loss whatever is occurred because accounts are audited reliable information as per the accounts audited accounts it is showing that suppose say the loss is around 75 lakh 75 lakh they are going to pay because it's clear accounts are audited clear information confirmed information and also declared and stamped and trusted information right so that is why at the time of fire accident or any accident they can claim it easily with the audited accounts no disputes no tension at all and in the same way sometimes the management will get an advice from the auditor so say for example there are many mistakes there are many frauds are occurring then management is worried they are intention auditor will give the advice because of his experience serve do like this you can take so-and-so precautions you change the stuff or make them more alert or teach them give them some some kind of coaching like this is just simple examples i'm giving you like auditor can give a piece of advice to the management which will be very much helpful for the entire organization that he can do for the management and also comparison is possible audited accounts means reliable information certified by the auditor then this information like they can use it how it is useful what are the advantages and how is the performance of this organization with the previous organization previous year or one branch to another branch like comparison they can do it in many ways that possibility is there so these are the advantages for the management next for creditors creators means who give the loan to this company suppose say i am giving a loan to xyz company around say two crores i am the creditor and creditor needs to know the performance of the company and my crores are kept it in so and so company how the company is performing how it is going on because of my interest on my own interest my own interest on that two course rupees which i have already invested so for those people what kind of advantages most of the people they'll be giving their long term or short-term loans to the organization when accounts are audited means they'll be on safe side they feel that everything is going systematically i need not to worry and performance whether it is good bad satisfactory whatever it may be it is reliable that kind of confidence the creditors are going to get from the audited accounts and next to fourth the benefit is that for the government bodies for government bodies also you can say there are some advantages especially for taxation authorities if i am a tax authority whenever i go to any company whenever i have to lay a tax on that particular company then audited accounts are there it is easy need not to worry just check the transactions and whatever amount is there according to the rules and regulations taxation rules i'll just lay the tax easy for the tax authorities if it is not audited then they must be in dilemma they must doubt about the accounts whether it is showing the clear picture or are they hiding anything are they concealing the facts so everything will be a question mark audited accounts means certified by the auditor so no doubt at all so the work of the income tax offices will be very easy that's about the tax authorities and in the same court of law and sometimes there may be a kind of disputes and maybe a court case or something is going on in such case also in quotas you can produce this produce this audited accounts as an evidence court will trust this audited accounts without any hesitation there also it is going to be useful as a evidence and also granting subsidies suppose company wants some grants my company xyz company is there i want to take some grants from the government i have to apply when i apply the government is going to give the subsidies or grants easily when my accounts are audited audited accounts means reliable whatever i am providing the information that is reliable when it is reliable they do not hesitate to give the subsidies or loans so at that case it is useful so this is for the government bodies okay but the company it will be for the government bodies it is really it is useful because of these three reasons and the last one is that for others who are the others what kind of benefits for others especially insurance companies when anything happened as i said insurance like accident fire theft or anything happened so companies will come for claim accounts audited means for insurance companies also they need not to worry much they can simply rely on that information and they can pay the amount loss and in the same way for amalgamation and absorption of companies whenever there is a you you know that related to the companies whenever there is amalgamation or absorption something is going on so at that time also audited accounts are going to be much helpful amalgamation is easy absorption is easy because of audited accounts reliable information is there so need not to worry take the action decide it what you are going to do step by step you can just proceed it because accounts are audited the same last one for workers and employees workers are employees who are working in the organization for them what kind of benefits are there they trust that company that company is paying the salaries to the workers sorry wages to the workers salaries to the employees right so they feel that accounts are audited means the information is clear no doubt transferable trust in trustee information is there company is going towards the progress or not everything is visible so that workers and employees they feel that we are in a safe position that safeguard they feel it because of audited accounts they'll come to know the performance of the organization reliable information they'll get it through the audited accounts so that is why it's a beneficial for the workers and employees of the organization they trust the organization they feel very comfortable and they feel very confident also so these are the simple five benefits inside matter you can remember it only the thing is you have to remember what are the benefits benefits for the first one how to remember easily i'll tell you first benefit it's for the business owners and shareholders second one for management creditors and for government bodies and others that's all simple right blindly you can just remember just close your eyes first one is the second one is third one therefore like this you can just remember it inside matter easily you can write if you just think it like this point suppose i'm talking about business organization and shareholders business organization and partnership and shareholders shareholders what kind of benefits they'll get like you can just think imagine and you can write there is no hard and fast rule that you have to write this point only in general also you can think you'll get easily ideas anyway take the screenshot or note down in the coming classes we'll see more classes related to the auditing by the way let me know editing is interesting i think so but anyway this was one of my favorite subject when i was student and also when i was a lecturer in a degree commerce college so there also i used to teach auditing happily along with practical subjects so by the way don't forget to share this videos study throughout the year and before exams you just revise it and have a wonderful career good luck

hello dear students welcome to device commerce and management academy today we&#39;ll see advantages of auditing why we have to go for auditing there are many advantages you know that in some organizations like private organizations auditing is not compulsory but in government organization and big organizations it is must and mandatory compulsory but still some organizations though it is not compulsory but still they are going for auditing why because of advantages because of the need and requirement and the benefits what they are finding from the auditing that is making them to go for auditing before going to the subject let me tell you all if you like our topic any subject any lecture if you like it please give a thumbs up if i find 10 000 viewership 10 000 likes i need then only i can say i&#39;m perfect otherwise i feel somewhat dissatisfaction please give a like and don&#39;t forget to share this videos because with lots of time and care energy i&#39;m preparing this video especially for you all just before exams also you can just study but i would advise you to study well in advance before exams you have to revise are you getting me now coming to today&#39;s topic advantages of auditing there are mainly five types of advantages five types of advanced kinds of advantages so what are those advantages means first one is that for owners of business and shareholders together we are taking for owners of business and shareholders for them what kind of advantages are there owners means who are the owners company owners business owners right and also shareholders shareholders also we call them as owners only for every company who are the owners means shareholders are the owners of the company so what kind of benefits are they getting first thing is that a sole proprietor if a person is sole proprietor then uh he&#39;ll be having accuracy of accountancy i&#39;m a sole proprietor but i have a very huge business now i want to know the accuracy of the accountancy i want to know the uh position of the organization whether i&#39;m going towards the profit or loss any kind of errors or mistakes something is happening so that i&#39;ll come to know through the auditor through auditing and for sole proprietor proprietor also audited accounts are very much beneficial to take a loan and for auditing purpose for everywhere it is useful for sole proprietor and in the same way for partnership firm partnership firm also they&#39;ll be having the same benefits just like sole proprietor audited accounts can be used for income tax purpose and also audited accounts are useful to get the loans these are the quite common advantages for both of them and another advantage for partnership for me is partners are many suppose one worker one partner is active partner another partner is just namesake another partner is sleeping partner but when audited accounts are there it is reliable it is available they&#39;ll trust on this accounts everything is going true and fair and there are no errors though there are no frauds that kind of accuracy and reliability so they&#39;ll find it in auditing so that is why partnership forms also going for auditing its advantage and also when it comes to the any kind of disputes between the partners as per the partnership act 1932 so the auditor can give them solution auditor can help them to come out of the disputes so this this kind of advantages are there so for the partnership firm in the same way for shareholders who are the shareholders shareholders are the people who purchased the shades from the company they are also having advantage the first advantage is that performance accounts are audited means reliable by looking at the audited accounts they can trust on the performance of the company yeah performance is good audited accounts or companies going for auditing why reliability so they trust they&#39;ll come to know exactly the performance of the organization and second thing is that value they shares if accounts are audited then as per the reliability of the accounts they can value their shares also audited accounts means easy no doubt at all so like shareholders shareholders can be confident if accounts are audited reliable information is getting so that their shares are on safe side so that kind of reliability they&#39;ll get it these are the advantages for the owners of business and shareholders second thing is that for the management management means who appointed the auditor company owners company board of directors company management what kind of advantages they are finding it first thing is that detection and prevention of errors and frauds first object of auditing this is what we have learned in the very first day of our class right so first of all detection and prevention of errors and frauds what kind of errors are there what kind of rods are there how we can prevent it we got it we came to know then how we can prevent it so that they&#39;ll come to this is the main major advantages for the management okay they&#39;ll be very confident we are getting it we are finding all the frauds we are finding all the errors and we are coming to know how to prevent it also who is responsible who is making it that accountability that responsibility given to the particular person so that is why this is one of the very big advantage for the management and also alertness in the stuff in any company auditing is going on means all the stuff means accountants accounts department they&#39;ll be alert they&#39;ll be alert because these accounts are going to be audited if something is going wrong then automatically auditor is going to catch that point he&#39;ll be caught by the auditor so that is why they&#39;ll be alert so there is the possibility of accuracy in the accountancy reliability you can find it alertness you can find it among the or it&#39;s uh among the uh accounts department staff members that you can find it in the same claims due to fire and accident if anything happens in the organization like there is a fire accident or there is a theft early case something is gone wrong then automatically the company has to go to the insurance company now for that if audited accounts are there that insurance company will trust on this audited accounts and they&#39;ll give the claim without any delay without further delay they are going to give the loss whatever is occurred because accounts are audited reliable information as per the accounts audited accounts it is showing that suppose say the loss is around 75 lakh 75 lakh they are going to pay because it&#39;s clear accounts are audited clear information confirmed information and also declared and stamped and trusted information right so that is why at the time of fire accident or any accident they can claim it easily with the audited accounts no disputes no tension at all and in the same way sometimes the management will get an advice from the auditor so say for example there are many mistakes there are many frauds are occurring then management is worried they are intention auditor will give the advice because of his experience serve do like this you can take so-and-so precautions you change the stuff or make them more alert or teach them give them some some kind of coaching like this is just simple examples i&#39;m giving you like auditor can give a piece of advice to the management which will be very much helpful for the entire organization that he can do for the management and also comparison is possible audited accounts means reliable information certified by the auditor then this information like they can use it how it is useful what are the advantages and how is the performance of this organization with the previous organization previous year or one branch to another branch like comparison they can do it in many ways that possibility is there so these are the advantages for the management next for creditors creators means who give the loan to this company suppose say i am giving a loan to xyz company around say two crores i am the creditor and creditor needs to know the performance of the company and my crores are kept it in so and so company how the company is performing how it is going on because of my interest on my own interest my own interest on that two course rupees which i have already invested so for those people what kind of advantages most of the people they&#39;ll be giving their long term or short-term loans to the organization when accounts are audited means they&#39;ll be on safe side they feel that everything is going systematically i need not to worry and performance whether it is good bad satisfactory whatever it may be it is reliable that kind of confidence the creditors are going to get from the audited accounts and next to fourth the benefit is that for the government bodies for government bodies also you can say there are some advantages especially for taxation authorities if i am a tax authority whenever i go to any company whenever i have to lay a tax on that particular company then audited accounts are there it is easy need not to worry just check the transactions and whatever amount is there according to the rules and regulations taxation rules i&#39;ll just lay the tax easy for the tax authorities if it is not audited then they must be in dilemma they must doubt about the accounts whether it is showing the clear picture or are they hiding anything are they concealing the facts so everything will be a question mark audited accounts means certified by the auditor so no doubt at all so the work of the income tax offices will be very easy that&#39;s about the tax authorities and in the same court of law and sometimes there may be a kind of disputes and maybe a court case or something is going on in such case also in quotas you can produce this produce this audited accounts as an evidence court will trust this audited accounts without any hesitation there also it is going to be useful as a evidence and also granting subsidies suppose company wants some grants my company xyz company is there i want to take some grants from the government i have to apply when i apply the government is going to give the subsidies or grants easily when my accounts are audited audited accounts means reliable whatever i am providing the information that is reliable when it is reliable they do not hesitate to give the subsidies or loans so at that case it is useful so this is for the government bodies okay but the company it will be for the government bodies it is really it is useful because of these three reasons and the last one is that for others who are the others what kind of benefits for others especially insurance companies when anything happened as i said insurance like accident fire theft or anything happened so companies will come for claim accounts audited means for insurance companies also they need not to worry much they can simply rely on that information and they can pay the amount loss and in the same way for amalgamation and absorption of companies whenever there is a you you know that related to the companies whenever there is amalgamation or absorption something is going on so at that time also audited accounts are going to be much helpful amalgamation is easy absorption is easy because of audited accounts reliable information is there so need not to worry take the action decide it what you are going to do step by step you can just proceed it because accounts are audited the same last one for workers and employees workers are employees who are working in the organization for them what kind of benefits are there they trust that company that company is paying the salaries to the workers sorry wages to the workers salaries to the employees right so they feel that accounts are audited means the information is clear no doubt transferable trust in trustee information is there company is going towards the progress or not everything is visible so that workers and employees they feel that we are in a safe position that safeguard they feel it because of audited accounts they&#39;ll come to know the performance of the organization reliable information they&#39;ll get it through the audited accounts so that is why it&#39;s a beneficial for the workers and employees of the organization they trust the organization they feel very comfortable and they feel very confident also so these are the simple five benefits inside matter you can remember it only the thing is you have to remember what are the benefits benefits for the first one how to remember easily i&#39;ll tell you first benefit it&#39;s for the business owners and shareholders second one for management creditors and for government bodies and others that&#39;s all simple right blindly you can just remember just close your eyes first one is the second one is third one therefore like this you can just remember it inside matter easily you can write if you just think it like this point suppose i&#39;m talking about business organization and shareholders business organization and partnership and shareholders shareholders what kind of benefits they&#39;ll get like you can just think imagine and you can write there is no hard and fast rule that you have to write this point only in general also you can think you&#39;ll get easily ideas anyway take the screenshot or note down in the coming classes we&#39;ll see more classes related to the auditing by the way let me know editing is interesting i think so but anyway this was one of my favorite subject when i was student and also when i was a lecturer in a degree commerce college so there also i used to teach auditing happily along with practical subjects so by the way don&#39;t forget to share this videos study throughout the year and before exams you just revise it and have a wonderful career good luck

Transcript for:Key Advantages of Auditing Explained

Transcript for:
Key Advantages of Auditing Explained