What is a financial audit?
A financial audit is an independent review and examination of a company’s financial statements and records. The purpose is to provide assurance that the financial statements accurately reflect the financial position. This is typically done by an independent accountant or firm and is required by law for publicly-traded companies. The process involves a detailed review of the company’s financial records. The financial records include income statements, balance sheets, and cash flow statements. The auditor will also review the company’s internal controls and accounting policies to ensure that they are in compliance with generally accepted accounting principles (GAAP). Financial Audit and its advantages: