The Value of Financial Audit Services

The purpose of a financial audit is to provide assurance that the financial statements are being presented and the accounting is being conducted in accordance with specified standards, norms, and regulations. The audit report is written to the Board of Directors of the organisation being audited. The board of directors seeks the assurance that management has accounted for and presented the transactions appropriately in the financial statements. The board often releases the audit report to certain stakeholders (debt holders, equity holders, donors, prospective donors, government ministries/agencies etc.) and may choose to distribute it widely.

The audit report also states what accounting principles are being applied in the organisation. Generally Accepted Accounting Principles and International Accounting Standards are often cited as accounting principles followed. The experienced reader will be able to identify from the type of principles applied if there are any adjustments that should be made to his/her analysis of the financial information to provide comparative value with financial statements prepared under other principles.

Sincerely,
Dennis G. Jenkins, CPA
Owner