What is the purpose of a financial audit?

A financial audit is an independent examination of a company’s financial records, statements, and operations to ensure accuracy, compliance with regulations, and the integrity of financial reporting. The purpose of a financial audit is to verify that financial statements present a true and fair view of the company’s financial position and performance. Auditors assess the company’s financial controls, accounting practices, and internal procedures to identify any risks, discrepancies, or potential fraud. Audits help ensure transparency and trust for stakeholders such as investors, creditors, and regulators, and they provide assurance that the company is adhering to financial standards and legal requirements.