Arun, Badal and Chavan are partners in a firm of constructions business. Since commencing in business in 15 months ago they have been fairly successful. Arun who has a Diploma in Business Management as well as in building constructions has kept the books and Arun has also prepared the first year’s accounts. Three partners are discussing these accounts, which show a profit in excess of drawings. Badal and Chavan suggest that they could draw out the excess but Arun counsels caution, talking about working capital needs, which confuses the others.
Chavan questions Arun on his interpretation of the partnership agreement, which is a fairly complicated document and suggests that they should pay to have the accounts audited. Arun becomes heated and says that would be a waste of money and he is perfectly capable of maintaining the accounts and makes no charge to his partners for his work. 

Discussion

a. What benefits would the partners get from employing an independent auditor?
b. Where would they find a suitable auditor?