Is it true that clients prefer statutory audits over independent reviews? If yes, why? And what are the factors that cause them to stick to statutory audit?


2 Answers

Anonymous Profile
Anonymous answered

I don't know if it's a case of clients preferring statutory audits over independent reviews, but I can imagine that the negatives that come with an independent review are:

  1. Increased cost
  2. Time consuming
  3. Disclosing private information to a third party and potentially making sensitive information public

On the other hand, the positives of a statutory audit are:

1) Assurances that the law is being followed in every aspect.
2) That the company's performance reports are a true reflection on the state of affairs.
3) That reports and records are up to date and filed correctly4) Positive steps and recommendations can be made following the audit.

Hanna Whilson Profile
Hanna Whilson answered

A review provides limited assurance, while an audit provides a reasonable amount of assurance. In my opinion, reviews (both positive and negative) play a great role in business running. I use for this purpose. Great source.

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