A financial statement audit involves the external examination of a corporation's financial statements to ensure their accuracy and credibility, culminating in an auditor's report. The audit report serves multiple purposes, such as providing assurance to shareholders, facilitating loans, and aiding in credit extensions or negotiations during mergers. Types of audited financial statements include transaction reports, income statements, balance sheets, and shareholder equity statements, all of which help stakeholders assess the company's financial health.

1. What is a Financial Statement Audit?
Introduction
In a financial statement audit, a corporation's financial statements are
analysed, and disclosures are given to external auditors.
The outcome of this review is an auditor's report demonstrating the
adequacy of the financial statements and related disclosures. When
distributed to the intended recipients, audit reports must be included with
the financial statements.
The reported financial situation and business performance are meant to
be more credible as a result of a Financial statement audit in
Washington Annual reports must be submitted by all publicly traded
corporations and are subject to SEC audits. Similar to this, lenders
frequently demand that the financial accounts of the businesses they
finance be audited.Suppliers may also require audited financial
statements before providing trade credit (usually only if the credit amount
sought is sizable).
Auditing has become commonplace as the increasing complexity of the
two basic accounting frameworks, generally accepted accounting
principles and international Financial Reporting & Compliance in
Chicago standards, continues with a series of revelations of fraudulent
reporting by major corporations.
Financial Statement Audit Services
Financial statements represent a company's financial performance and
operating activities through written accounting reports. It is prepared by
company management for a specific period, usually during the fiscal
year. Some examples of financial statements are:
● transaction report.
● financial charts.
● balance sheet, etc.
The primary purpose of Financial Statement Preparation in Chicago
is to inform management, owners, shareholders, government and other
stakeholders about the actual financial condition of a company.
Financial statements are an essential part of any business because they
reflect the performance of the organisation. Mistakes or inaccuracies in

2. financial statements can mislead management and lead to poor financial
decisions by the company. To identify these types of errors,
organisations should conduct a financial statement audit to review and
clarify that the financial statements are free of errors. Companies should
have their financial statements audited by external auditors experienced
in auditing financial statements. A financial statement audit's main goal
is to make sure that management provides a "true and fair" picture of the
business's financial performance and condition.
What is the purpose of a financial statement audit report?
Audit reports generated from financial statement audits serve a number
of purposes.
● It is used by management as a comprehensive evidence of owners
and shareholders. When the audit report reveals that the financial
statements are accurate and fair, shareholders and investors can
demonstrate that management has good faith towards them.
● Because financial statements are reliable, they are used to attract
new investors. If the auditor states in the financial statements audit
report that the statements are invalid and not fair, the new investor
will not rely on those financial statements.
● It is used to get a bank loan or to extend a bank loan for a certain
period of time. When an entity requests a bank loan, the bank
wants to verify the company's financial position. The bank will then
require an audit report on the audit of the financial statements for
that financial statement. In some cases, banks ask you to submit a
financial statement audit report instead of checking the previous
year's financial statements.
● It can be used to obtain or extend the credit period. This happens
when a business deals with multiple suppliers and asks the
supplier for an extension of time. In most cases, suppliers require
financial statement reports.
● Audit reports on financial statement audits can be used for
negotiation purposes in mergers and acquisitions.
Types of audited financial statements
CPAs conduct financial audits to examine and verify the accuracy and
error-freeness of a company's financial statements.The basic types of
audited financial statements are:
● Transaction report

3. A cash flow statement is a document used by a company to list
cash outflows and inflows into a business. It shows investors and
other external stakeholders that the company can meet its
short-term obligations, such as operating expenses and fees, and
will continue to operate and generate revenue into the future. The
CPA can audit this document by verifying that footnotes are correct
and comparing cash flow column values to bank statements.
● Financial chart
A business prepares an income statement to highlight its
performance during the fiscal year, including expenses incurred
and revenue generated by the Business Accountants in New
York. The last line of the report shows the company's gross net
profit or net loss. Earnings per share (EPS) may also be included if
a public company prepares its statements. During the audit, the
CPA may review the company's cash and personal books to
ensure that the information in the income statement is accurate.
● Balance sheet
A balance sheet is a document used to report the financial position
for a specific period, such as an accounting quarter or year. In this
sheet, a company lists its assets and liabilities in order of liquidity.
An asset's liquidity is determined by how easily its leverage can be
converted into cash. An audit of a company's balance sheet by a
CPA can make sure that the assets and liabilities are fairly
reflected and that the record is error-free.
● Shareholder Equity Statement
A company may include a shareholder equity statement in its
balance sheet, but may also include it in its individual financial
statements. This document can be examined by stakeholders to
determine the worth of the business and to examine any changes
that have taken place over a specific time period.Shareholders can
benefit from an increase in equity capital, but may decide to sell
the company's stock when equity capital decreases.