Tracy Keulen, the sole owner of a small bakery, has been told that the business should have financial statements reported on by an independent Register accountant (RA). Keulen, having some bookkeeping experience, has personally prepared the company’s financial statements and does not understand why such statements should be examined by a RA. Keulen discussed the matter with Petra Dassen, a RA, and asked Dassen to explain why an audit is considered important.

Required:

A. Describe the objectives of the independent audit.

B. Identify five ways in which an independent audit may be beneficial to Keulen.