Advantages of an audit 
    Importance of auditing can be judged from the fact that even those organizations which are not covered by companies act, 1956 get their financial statements audited. It has become a necessity for every commercial and even non-commercial organization. People are interested to know the true facts about their business which are helpful to them for future planning and improvements in operations. 
       Sold trader is interested in knowing whether the business is conducted efficiently or not. To maintain healthy relations among the partners, in case of partnership business, it is important that true financial statement must be made known to every partner. Because of separation of ownership and management in joint stock companies, shareholders do not have knowledge of day-to-day administration . Shareholders would like to know whether the amount invested by them is properly used or not. Answer for all such questions can be obtained by getting the accounts audited from a qualified auditor. 
1.For the Businessmen and Shareholders

• In case of sole trader,he can depend on the audited accounts. He can value his business on the basis of audited accounts accounts for the purpose of sale of business or for admitting a new partner. 
• Dispute over the correctness of profits can be avoided. In case of partnership firm, audited accounts will be useful in valuing goodwill and business on admission and retirement of a partner. 
• Shareholders, who do not know about day-to-day administration of the company, can judge the performance of management from audited accounts. 

Shareholders can value their shares on the basis of audited financial statements. 
2. For the Management 

• It helps the management in detecting and preventing errors and fraud. 
• It keeps the accountants and staff vigilant while preparing books and records as they know in advance that all the accounts are to be audited. 
• Claims due to fire, theft and accident can be estimated from audited accounts. 
• Management gets advice on financial affair from the auditors who have experts knowledge. 

Because the audited accounts are uniformly prepared over the year, comparison of such statement becomes easier. 
3. For the Creditors 

• Long-term and short-term creditors can depend on audited financial statements while taking decision to grant credit to business houses. 

4. For the Government Bodies 

• Taxation authorities depend on audited financial statements in assessing the income tax, sales - tax and wealth tax liability of the business. 
• Audited accounts can be produced in the Court to provide an evidence. 
• Audited accounts are useful for the government while granting subsidies etc. 

5. For Others 

• It can be used by insurance companies to settle the claims arising on account of loss by fire. 
• In case of amalgamation and absorption, the purchasing company can calculate purchase consideration on the basis of audited accounts. 
• It safeguards the interests of the workers because audited accounts are useful for settling trade disputes for higher wages or bonus.