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For the last few years your firm has helped Colin, a sole trader, prepare his accounts for the taxation authorities. Colin is about to incorporate his business and has asked your advice on a number of issues.
Required
Advise Colin on the following.
(a) The advantages to the company of having its financial statements audited (you may assume that the company would be able to claim exemption from audit).
(b) Whether the audit undertaken on his small company would be the same as an audit undertaken on a large one.
(c) Whether he has any alternatives to audit that would still provide him with a degree of assurance
Describe and evaluate this type of internal audit. What types of organisation would it be most useful for?
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