Why do the shareholders of a company have to be firmiliar with audit reports

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Why do the shareholders of a company have to be firmiliar with audit reports

Why do the shareholders of a company have to be firmiliar with audit reports
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Shareholders of the company have to be familiar and understand audit reports as this informs them whether their money safe and used efficiently to earn them the required returns. Audit reports does not only inform/pursuade them, but also gives them confidence in the business about its going concern and its continue existence. Furthermore, since shareholders have powers over the management structure of the business, audit reports gives them a clear picture to judge the performance of current management or change the structure based on the report.



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