Financial audit

The objective of internal audits is to ensure accurate financial reporting, among other goals. While internal audits primarily focus on risk management and internal controls, they may also look at a company’s financial records. Thus, these audits also refer to examining a company’s financial statements. The objective for these audits may, however, differ from other audits. For example, unlike external audits, financial audits in internal auditing don’t conclude with an audit report.

It aims to look at a company’s financial reporting systems. It also seeks to obtain evidence related to compliance with regulatory and other applicable frameworks. Similarly, it will also involve reviewing the company’s accounting policies and procedures. While a report is not compulsory, internal auditors may present their recommendations in an internal audit report.