Bebs A Carbaquil BSBA-MA III-A

Bebs A. Carbaquil BSBA- MA III- A

Case 3

a.      The objectives of an independent audit is to examine the Financial Statements if it is fairly presented in all material respect and if the management prepares the statements their might be a conflict of interest to the persons who use the statements.

b.      Five ways in which an independent audit may be beneficial to Lyn Cruz:

1.      She fulfills the requirements.

2.      She may now communicate the information to other interested users since all the statements have been examined by a CPA.

3.      She can have the confidence to compete to other company.

4.      Misstated account balances may be corrected.

5.      She can ask for some suggestions and opinion.