What is the main purpose of a financial audit?

The main purpose of a financial audit is to independently examine financial information. This process is crucial for validating the accuracy and integrity of a company's financial statements, which ensures that they fairly represent the organization’s financial position and performance. Audits are typically performed by external auditors who are not part of the organization being audited, allowing for an unbiased evaluation.

This independent verification builds trust among stakeholders such as investors, creditors, and regulatory bodies, who rely on accurate financial information for decision-making. The findings of an audit can reveal areas where financial practices can be improved, and help in detecting any fraudulent activity or mismanagement of funds.

In contrast, evaluating employee satisfaction, conducting sales forecasting, and assessing market risk pertain to different aspects of business management that do not directly involve the verification of financial information. While these functions are important for overall business strategy and operations, they do not fulfill the primary role of a financial audit.