Advantages of Audit of Accounts of a Partnership Firm: Advantages are as follows -
(i) Audited accounts provide a convenient and reliable means of settling accounts between the partners and thereby possibility of dispute among them is mitigated.
(ii) On the retirement/death of a partner, audited accounts constitutes a reliable evidence for computing the amount due to the retiring partner or representative of deceased partner.
(iii) Audited accounts are generally accepted by the Income tax authorities for computing the assessable income.
(iv) Audited accounts are relied upon by banks for advancing loan.
(v) Audited accounts can be helpful in the negotiation for sale or admission of a new partner.
(vi) It is an effective safeguard against any undue advantage being taken by a working partner as against the non working partners.