What are financial statement audits?

What are financial statement audits?

Financial statement audits are independent evaluations of a company's financial statements to ensure accuracy and compliance.

Why are they important for businesses?

They provide assurance to stakeholders that the financial statements are free from material misstatement, enhancing trust.

Who conducts these audits?

Certified public accountants (CPAs) or independent auditors typically conduct financial statement audits.

How often should a company have its financial statements audited?

It depends on the company size and regulatory requirements, but annual audits are common for publicly traded companies.

What are the main steps involved in the audit process?

The main steps include planning, risk assessment, testing controls, substantive testing, and reporting the findings.