What is an Audit?

In this explainer video, IFAC Board Member Lisa Padmore shares how audits are used to build trust between investors and companies.

[luziasatchitomeno]

Clear Understandable expectations, thank you.

[Tpantaleoni]

🎯 Key points for quick navigation:

00:00 *📊 Understanding Financial Statements and Audits*
- Understanding financial statements and disclosures is crucial for making investment decisions.
- Financial audits validate the accuracy and fairness of financial statements.
- Auditors play a critical role in providing independent assurance on financial statements.
01:28 *🔍 Role and Responsibilities of Auditors*
- Auditors examine financial statements to detect material misstatements.
- They use sampling, analytics, and adhere to international auditing standards (ISAs).
- Auditors must maintain independence and follow ethical codes.
02:57 *🛡️ Importance of Audits and Financial Statements*
- Audits ensure reliability of financial reporting and validate internal controls.
- They build trust between companies seeking capital and investors.
- Independent audits are crucial for maintaining market trust and economic stability.

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[aviatorchris]

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[OneChurch-cgxw]

"We cannot take trust for granted" 👍