A professional review and examination of a company’s financial statements are required under corporate law for the purpose of ensuring that the statements are fair, consistent and conform with International Financial Reporting Standards (IFRS).
What is an Audit?
An audit is an independent examination of a company’s financial records and operations to assess the accuracy and reliability of its financial statements and to ensure that its financial reporting complies with applicable laws and regulations.
The purpose of an audit is to provide stakeholders, such as investors, creditors, and regulators, with an independent and objective assessment of a company’s financial performance and operations. Auditors use a variety of techniques, including reviewing financial records, interviewing employees, and testing transactions, to gather evidence and form an opinion on the company’s financial statements.
Audits are typically performed by certified public accountants (CPAs) or other qualified professionals who have the training and expertise to conduct a comprehensive examination of a company’s financial records. Audits are usually conducted on an annual basis, although they may be performed more frequently in certain circumstances.
A successful audit results in the issuance of an audit report that includes the auditor’s opinion on the company’s financial statements. This report provides important information to stakeholders about the financial health and performance of the company and helps to build confidence in its financial reporting.
