financial audit

What Does a Financial Audit Involve?

The audit process generally involves several key steps:
1. Planning and Risk Assessment: The auditor will plan the audit and assess the risk of material misstatements in the financial statements.
2. Internal Control Evaluation: They will evaluate the effectiveness of the company's internal controls.
3. Substantive Testing: Detailed testing of financial transactions and balances to verify their accuracy.
4. Audit Report: The auditor will prepare a report summarizing their findings, including any identified issues and recommendations for improvement.

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