a. u; n A large corporation with securities listed on a stock exchange is required by the rules of the stock exchange and by the rules of the Securities and Exchange Commission to provide an audit report with the annual nancial statements furnished to its stockholders. It also is required to engage the auditors to provide an opinion on its internal control. Apart from legal requirements, however, a large listed corporation recognizes that it must maintain investor confidence in the reliability of its nancial statements and internal control over financial reporting if it is to continue to be able to secure capital irom the public. The report by a rm of certified public accountants adds credibility to the financial statements prepared by the corporation. When a small familyowned enterprise elects to have an audit, the purpose usually is to use the auditorsT report to support an application for a bank loan