Importance of auditing financial statements

The main purpose of auditing financial statements is to provide relevant information to the internal and external stakeholders about the financial position of the organization. This serves to bridge the lop-sidedness of published financial statements between external and internal users to ensure the credibility of these statements. The auditor is authorized to organize, make possible and provide for audit services within organizations. Strategies which are currently pursued audit functions in the public sector include Professional Practice Framework for the creation of essential documents and templates for audit regulations, auditing standards, and annual audit planning templates; Development of human resources to recruit and train auditors. The objective of auditing is to analyze audit quality and recommend ideas for potential investigation. In other words, an audit is a specialized examination which is delivered by experts in response to financial regulations and demands. An escalation of this statement will help to identify some features that could control audit quality. For this, it is very important to note that the quality of the audit depends upon the qualifications and experience of the auditors, the users and society at large who are all stakeholders in the monetary coverage progression and methods. All might not have the same view with regards to the constitution of audit quality.

The clients who use financial reports believe that quality means that there are no irregularities in the financial statements. Alternatively, the auditor carrying out the audit could define the best quality as the satisfactory completion of all work that is the requirement of the organization’s audit methodology. In the opinion of the auditing firm, the best quality audit is one which can withstand inspection by a court of law. Professionals who regulate high-quality audits are those that comply with professional standards. For the resolution of different viewpoints and to understand a high-quality audit report, it is important to assume a hypothetical structure through which the concept of quality can be determined.

The framework will be the benchmark for determining superior attributes. Each audit report is usually different from any other report because the characteristics of an audit arise because of different client requirements, auditors, the timing of the audit and evaluated risks and procedures that are used. Since the audit is a financially motivated reaction to risk. The quality of an audit depends upon basic uniqueness that is present in any individual engagement because audit quality can be high or low at the conclusion of the audit. If the audit is not authenticated, it becomes difficult to define its quality for a conclusive outcome or the quality of the audit.