1. Objectives of the organizations or companies financial statements audit.
Summary: The objective of a financial statement audit is to verify whether the financial
statements are free of substance misstatement. An audit comprises investigative, on a check
basis, proof sustaining the amounts and revelations in the financial statements. An audit also
contains assessing the accounting principles as well as estimating the overall financial
statement presentation.
The objective of a financial statement audit is to provide a view, based on the declarations of
management, as to the health and stability of the organization being audited. An audit relies
on the proceedings of the organization's management
Author interpretation: Earlier one of my article” Objectives of the firms or companies
financial statements analysis” I have uttered that any companies or firms financial statements
analysis is very importance. The major benefit is that the investors get enough idea to decide
about the investments of their funds in the specific company. Financial statements analysis
can help the government agencies to analyze the taxation due to the company. Moreover;
company can analyze its own performance over the period of time through financial
statements analysis.
In this article” Objectives of the organization or companies financial statements audit” I have
explicate the objectives of the financial statement audit. These audits are meant to afford
practical declaration to creditors and investors that the financial statements are truthful
Introduction: when companies have their financial statements, policies, and measures
evaluated by an auditor. This evaluation procedure is called a financial statement audit. The
auditor inspects a company’s financial documents to decide if that company’s financial
statements conform to Generally Accepted Accounting Principles (GAAP). The reason of the
audit is to afford declaration that the financial statements, and allegations presented by
company management, are complete and perfect.
Objectives of audit:
Commonly, a financial statement audit is concluded in numerous ladders, as well as the
planning stage, sample testing, controls and business deal testing, exposé testing, final
reporting, and release of the auditor’s opinion. The audit planning stage occurs prior to the
end of the company’s financial series. The company determines the series, which is usually
quarterly or annually.
The audit work is performed in agreement with Generally Accepted Accounting Principles
(GAAP) and includes those reviews of internal controls, tests, and verification of data and
other actions deemed essential by the auditor. Classically, annual financial statements are
focus to audit while provisional statements are not.
01. Determine if the statistics obtainable are fair demonstrations of the company’s process for
the year in order to come up with a precise calculation of tax liabilities.
02. Authenticate if the report is significantly error-free. Modifications or improvements, if
any, must not result in any matter dissimilarity that could modify the decisions of the
financial statement users, had they been accessible with the correct statistics. It is fairly
significant for public companies to present financial reports that reproduce the real situation
of the business to provide investors and creditors with a precise basis for investment or
lending decisions.

2. 03. Review if the figures accessible were computed, estimated, recorded, and offered in
accordance with the generally accepted accounting principles based on elementary and GAAP
rules. Management has to make spirited decisions by using the specifics and statistics
controlled in financial reports that were equipped with comparative uniformity against those
of other companies occupied in a similar trade.
04. Appraise if the financial statements were equipped beneath an internal control
configurations, in which counter-checking events, aimed at minimizing and eradicating the
incidence of scam or error, are incorporated. In view of such counter-checking events, assess
the level of fulfillment within the company as a whole to locate possible breakdowns or
limitations.
05. Perform a chance verify to find out if there are no collapses in internal control procedures
that may have permitted the perpetration of scam.
06. Outline matter errors to establish their root causes, and find out how and if they were
attuned, rectified, or treated before they were used as statistics for financial statement
appearances.
Conclusion: formerly the testing and evaluation stages are inclusive; the auditor can decide
the financial statement audit. The auditor abridges the results in a written statement that is
distributed to company management.
In conclusion the auditor concerns a judgment based on its final statement. An untrained
judgment indicates that the financial statements kowtow to GAAP. An auditor can matter a
qualified opinion if, during the audit, it finds a deviation from GAAP, or if the audit could not
be completed for some reason. An adverse opinion may be issued if the auditor finds material
misstatements, or if procedures do not follow GAAP standards. The judgment is usually
published with the company’s financial records in its annual report.