Can Anyone Explain The Objective Of Investigation In Auditing?
The buyer can make investigation before purchasing the business unit. The net assets basis or market value of business can be used to determine the bargain price. The incoming partner can make investigation before joining the business firm. The purpose of investigation is to know the financial position of existing business. A healthy business is essential for admission of new partner. The prospective investor can investigation the accounts and other business matters for making decision to buy or not to buy shares of a business. The market ratios give more guidance for sound investment. The lenders can investigate the business matters of any client. The purpose of investigation is to check the credit worthiness of the party. The various techniques can be applied to accept or reject the loan application. The lenders can investigation is to locate fraud committed by persons. A fraud means intentional misreprentation of financial information. There may be misappropriation of stock of funds
