Audited account act as a effective safeguard against any undue advantage being taken by a working partner aa against non working partner?? HOW COME??
Non working partner rarely comes to office he has simply invested money, he doesn’t kmnow what goes on in days to day operations , he simply sees financial statements at year end . He relies on books and financial statements . Books can be manipulated to show personal expenses of working partner as business expense .
audit ensures such malpractices are detected and reported