Question

Which of the following party is/are not interested in financial audit?

• A. Trade creditors.
• B. Debenture holders.
• C. Shareholders.
• D. Relatives of management.

Answer 1

The correct option is D Relatives of management.

Stake holders in the business surely want to know the financial position of the organization. Interested parties who want to know about the financial position are creditors, lenders, existing and prospective investors.

Trade Creditors are mostly interested to know about the security of their money which is due from the organization against the supply of goods or services.

Debenture holders would like to know about the long term financial position and interested to know the repayment capabilities for interest and debenture amount.

Shareholders are more interested about the overall business performance.