A company carries on its business with the capital provided by the shareholders and other members of the investment community. It is important for them that their investment is safe and that it has been used for the purpose it was intended to be. The company has to maintain numbers of financial books, accounts and statements for the proper accounting of the income and expenditure. These accounts, books etc must be inspected and verified by an independent person or a firm to give the true picture of internal financial functioning of the company.