What is the primary goal of auditing financial statements?

Issuing an opinion on the fairness of the financial statements is the central objective of auditing. This process involves an independent evaluation by a qualified auditor who examines the financial records and relevant internal controls to assess whether the financial statements present a true and fair view of the organization's financial position and performance in accordance with applicable financial reporting frameworks, such as GAAP or IFRS.

The audit provides assurance to stakeholders, including investors, creditors, and regulators, that the financial statements are reliable. This assurance is crucial for maintaining trust and enhancing the credibility of the organization's financial reporting, ultimately supporting effective market functioning and decision-making by those relying on that information.

While uncovering fraud, improving management decision-making, and providing future recommendations may occur as byproducts of the audit process, they are not the primary goal. The focus remains on the auditor’s opinion regarding the fairness and accuracy of the financial statements.