The beneficiary(s) of audit report is/are 1. Creditor 2. Income tax authority 3. Director 4. Government Select the correct answer:

Only 1
Both 2 and 4
Both 3 and 4
All of the above

The correct answer is D. All of the above.

An audit report is a document that is prepared by an auditor after they have conducted an audit of a company’s financial statements. The purpose of an audit report is to provide assurance to users of the financial statements that the statements are free from material misstatement.

The beneficiaries of an audit report are the users of the financial statements. These include creditors, investors, and other stakeholders who rely on the financial statements to make decisions.

Creditors are interested in the financial statements because they want to make sure that the company is able to repay its debts. Investors are interested in the financial statements because they want to make sure that the company is a good investment. Other stakeholders, such as suppliers and employees, are also interested in the financial statements because they want to make sure that the company is financially stable.

The income tax authority is also a beneficiary of an audit report. The income tax authority uses the financial statements to determine the amount of tax that a company owes.

The government is also a beneficiary of an audit report. The government uses the financial statements to monitor the performance of companies and to ensure that they are complying with regulations.

In conclusion, the beneficiaries of an audit report are all of the users of the financial statements, including creditors, investors, other stakeholders, the income tax authority, and the government.

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