OPQ Ltd. is a widely held company engaged in manufacturing activities. The management of the company is responsible for preparation of financial…

Benefits of Audit to various stakeholders are: Audited accounts provide high quality information. It gives confidence to users that information on which they are relying is qualitative and it is the outcome of an exercise carried out by following Auditing Standards recognized globally.In case of companies, shareholders may or may not be involved in daily affairs of the company. The financial statements are prepared by management consisting of directors. As shareholders are owners of the company, they need an independent mechanism so that financial information is qualitative and reliable. Hence, their interest is safeguarded by an audit.An audit acts as a moral check on employees from committing frauds for the fear of being discovered by audit.Audited financial statements are helpful to government authorities for determining tax liabilities.Audited financial statements can be relied upon by lenders, bankers for making their credit decisions i.e. whether to lend or not to lend to a particular entity.An audit may also detect fraud or error or both.An audit reviews existence and operations of various controls operating in any entity. Hence, it is useful at pointing out deficiencies. Therefore, audit is not merely a statutory requirement but an essential mechanism that enhances credibility of financial statements, protects stakeholder interests, and supports informed decision-making.