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Kevin Black, the sole owner of a small bakery, has been told that the business should have financial statements reported on by an independent auditor. Kevin Black, having some bookkeeping experience, has personally prepared the company's financial statements and does not understand why such statements should be examined by an independent auditor.
Required:
(i) Explain the objectives of an independent audit.
(ii) Show five ways in which an independent audit may be beneficial to Kevin Black.
? Decide what areas of the company will be audited and the frequency of the audits. Prepare a yearly audit schedule and distribute. ? Make an audit plan. Decide what other audit r
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