An audit will provide an organisation with an opinion on the true and fair nature of the financial statements.

An audit involves:

• review and testing of internal controls
• physical verification of certain documentation and assets
• direct confirmations with third parties
• substantive verification of transactions and balances to evidence
• review of documentation associated with various audit assertions

Benefits of an audit engagement include:

• provides reasonable assurance that the report is free from material misstatement
• highlights area(s) for management’s attention