Theranos was in the business of testing blood for various diseases. The company$$s scientists had developed a quick and easy way to conduct extensive diagnostic tests using just a few drops of blood taken from a person$$s fingertip. While that sounds great, the technology didn$$t actually work. The company$$s founder and CEO, Elizabeth Holmes, worked hard to raise money to advance the technology, hoping that it would eventually be effective. She became famous because she started the company from nothing and ultimately raised over $$700$ million from investors. However, Holmes raised the money privately and did not issue public equity or debt, thereby avoiding the requirements from the SEC and stock exchanges to hire an auditor to provide assurance over the financial statements.

$*$ Explain why management would normally want an independent audit of its financial statements.