During the past several decades, auditing has gained a considerable amount of attention both within the financial community and within academic curricula. For example, independent audits are now performed commonly for all publicly traded, and for many privately owned, corporations. Further, not only do undergraduate accounting curricula typically include an introductory auditing course, but many colleges and universities also offer advanced undergraduate and graduate auditing courses. There appears to be an established need for auditing.

Required:

Explain why each of the following institutions needs auditing services:

1. Publicly owned corporations.

2. Privately owned corporations.

3. State and local governmental agencies.

4. Partnerships.