USERS OF AUDITED FINANCIAL STATEMENTS


The annual accounts and report are primarily prepared by the directors to the shareholders. However, the following parties need financial statements.

i. Those parties with vested interests in a business.

  1. Employees.
  2. Creditors or suppliers
  3. Lenders and debenture holders
  4. The management
  5. The shareholders to whom the financial statements are addressed.
  6. Credit rating agencies.

ii. Those with potential interests

  1. Potential shareholders
  2. Trustees
  3. Suppliers
  4. Customers

iii. Those with representative interests

  1. Lawyers
  2. The government
  3. The general public.
 

iv. Others

  1. Competitors
  2. Stock brokers
  3. Statisticians
  4. Financial journalists
  5. Trade unions.