Why There Is Need To Keep Moral Check On Employees Of The Business?

The visits of an auditor have considerable moral check on the staff of the client as they ae aware that the accounts will be checked. A regular audit therefore tends to keep the books of accounts up-to-dates and assists in exercising great moral influence on the staff so as to help in preventing fraud and errors. International Accounting Standards contains objectives of an audit. Related guideline in this respect below:

The objectives of an audit of financial statements prepared within a framework of recognized accounting policies is to enable an auditor to express an opinion on such financial statements. The auditor opinion helps establish the credibility of the financial statements. The user however should not assume that the auditor's opinion is an assurance as to the future viability of the entity not an opinion as to the efficiency or effectiveness with which management has conducted the affairs of the entity.

So the moral check on the employees is an important factor which helps to auditor to check the validity of account because they use to associate it with the conditions of the audit. So the moral check is also used to measure the seriousness of employees towards their works. So helps the auditor to make his report.