Why is it useful to conduct audit in India?

Other than complying to relevant laws mandating for audits, the importance of the audit process cannot be understated, as the results can be used for the following purposes:

• Helping investors know the financial health of the company;
• Assuring the government that the company is properly discharging its legal duties;
• Helping lenders evaluate the credibility of the company;
• Drawing management’s attention to any shortcomings in the company’s business operations; and
• Helping management improve business efficiency.