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Auditing involves examining and providing feedback on verified items. In the context of a financial audit, the auditor scrutinizes the organization’s books of accounts and other relevant records. This examination yields essential information for the auditor to form an opinion on whether the accounts are properly maintained and comply with necessary statutory accounting and financial reporting standards.

. A financial statement audit, conducted independently, evaluates the financial statements prepared by the organization. The primary objective of such an audit is to offer third-party assurance that the management’s financial statements present a “true and fair” view of the company’s financial performance.

The outcome of this examination is a report from the auditor, attesting to the fairness of the financial statements’ presentation and related disclosures. When the financial statements are issued to intended recipients or stakeholders, the auditor’s report accompanies them.