What is a financial statement audit?
An audit is an objective evaluation of an organization’s financial reports and reporting processes. An audit provides the highest level of assurance available. Audits provide an opinion that the financial statements are prepared in accordance with the applicable financial reporting framework.
Why are financial statement audits required?
There are many reasons why an audit may be required. The primary purpose of a financial statement audit is to provide regulators, governments, lenders, and shareholders with independent assurance that the information being reported is presented fairly and complies with the applicable financial reporting framework.
Financial Statement Audit Process
A financial statement audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
Financial Statement Audit Services in Barrie and Newmarket
At Smith, Sykes, Leeper and Tunstall LLP, we express an opinion about whether your financial statements are free of material misstatement and whether they are presented in accordance with the applicable financial reporting framework.