What is a financial audit?
An audit is an objective evaluation of an organization’s financial reports and reporting processes. A financial audit provides the highest level of assurance of any engagement. Audits provide an opinion that the financial statements are in accordance with prevailing financial standards.
Why are financial audits required?
There are many reasons why an audit may be required. The primary purpose of financial audits is to provide regulators, government, and shareholders with the assurance that finances are in order and accurate.
The Auditing Process A financial 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 control 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, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
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 Auditing Service In Barrie & 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 Canadian accounting standards for private enterprises.