An audit is defined as an official inspection of the records of an organization, generally performed by someone who is independent of said organization.

Auditors provide reasonable assurance that the financial statements are free of material misstatements and that they present the financial position of the company in all material respects.

The main purpose of a financial statement audit is an objective appraisal of an organization’s financial position. Audited financial statements provide reasonable assurance that interested parties can rely on to make decisions about a company — whether to invest funds, lend money, extend credit, or otherwise do business with that company.