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| Author: | Elliott, R. |
| Title: | The future of audits |
| Journal: | Journal of Accountancy
1994 : SEP, p. 74-83 |
| Index terms: | ACCOUNTING MARKETING AUDITING |
| Language: | eng |
| Abstract: | The power of information technology is threatening the audit function. Auditing creates tremendous economic value. Companies benefit from a reduced cost of raising capital; if their financial statements were unaudited, they would have to pay more. That is, for debt, they would pay higher interest rates; for equity, they would have to offer their shares at lower prices. If a company with $10 million in total capitalization had to pay 1% to 3% more for capital without an audit, having an audit would save between $100,000 and $300,000. |
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