What does a financial audit seek to verify?

A financial audit primarily seeks to verify the accuracy and completeness of financial records. This process involves a systematic examination of an organization’s financial statements, accounting records, and other relevant documents to ensure that they present a true and fair view of the entity's financial position. Auditors check for errors, discrepancies, and compliance with applicable accounting standards and regulations.

By validating these records, auditors help to establish trust among stakeholders, such as investors, creditors, and regulatory bodies. An accurate portrayal of financial records is essential for assessing the financial health of an organization, as well as for making informed decisions based on those records. Hence, the focus of a financial audit is not on future projections or profitability but on the integrity of existing financial data.