In addition to the above challenge, the proper selection and application of GAAP have become

increasingly complex over the years, given new types of transactions and new rules of
accounting and disclosures pertaining to them. For this reason, the need for a professional
auditor, knowledgeable in GAAP, who give reasonable assurance that financial reports are
prepared in accordance with GAAP, has become more and more apparent to shareholders,
creditors, potential investors, tax authority and other stockholders.

Auditing is an independent examination of and expression of opinion on the fairness and

reliability of the financial statement of an enterprise by duly appointed auditor in pursuance of
relevant statutory or professional obligations. The overall need for auditing is the need for
providing credibility of reported information.