01-28-2004, 01:51 PM
You wanna know y the profit figure is so given a great deal of importance by the auditors? The primary reason is that auditors are appointed on behalf of the shareholders and the key figure for shareholders is the profitability of the company. Put your self in an investor's shoes. What is more important for you, the cost of sales and other expenses or how much profitable the company is and what dividends it will pay which is ofcourse appropriation of profit.
