An audit is an independent examination of an organization’s financial report to ensure it fairly reflects the company’s financial position. The purpose of an audit is to provide an unbiased opinion on the accuracy and fairness of financial statements, particularly for public companies regulated by the SEC and PCAOB. The audit process involves planning, risk assessment, maintaining independence and professional skepticism, sampling and analytical procedures, audit reporting, and post-audit activities. By understanding these critical components, stakeholders can have confidence in the reliability of financial statements.
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