Business World

Audit of Financial Statements

The examination of a financial report of an organization is known as an audit. The financial report is made of the balance sheet, income statement, changes in equity statement, statement of cash flow, and other notes that pertains accounting. The reason why an audit is carried out is to ascertain whether the information provided in the financial report actually reflects the financial position of an organization at any given time. Every organization is required to conduct an audit once every year so that if there is any problem it is noted before it is too late.