NanoTech Entertainment Inc (NTEK)

[Mexico10]

Benefits of an audit Auditors are generally and ultimately appointed by the shareholders and report to them directly or via the audit committee (or its equivalent) and others charged with governance. However, many companies’ audited financial statements, and particularly public companies, are on public record. For large public companies, they may also be used by other parties for varying purposes (see the chart below). In addition to shareholders, these may include, for example, potential investors considering buying the company’s shares and suppliers or lenders who are considering doing business with it. A rigorous audit process will, almost invariably, also identify insights about some areas where management may improve their controls or processes. In certain circumstances the auditor may be required to communicate control deficiencies to management and those charged with governance. These communications add value to the company and enhance the overall quality of business processes.