A financial audit is conducted to provide an opinion whether "financial statements" (the information being verified) are stated in accordance with specified criteria. Normally, the criteria are international accounting standards, although auditors may conduct audits of financial statements prepared using the cash basis or some other basis of accounting appropriate for the organisation. In providing an opinion whether financial statements are fairly stated in accordance with accounting standards, the auditor gathers evidence to determine whether the statements contain material errors or other misstatements.
The audit opinion is intended to provide reasonable assurance, but not absolute assurance, that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework. The purpose of an audit is to provide an objective independent examination of the financial statements, which increases the value and credibility of the financial statements produced by management, thus increase user confidence in the financial statement, reduce investor risk and consequently reduce the cost of capital of the preparer of the financial statements.
In accordance with the US GAAP, auditors must release an opinion of the overall financial statements in the auditor's report. Auditors can release three types of statements other than an unqualified/unmodified opinion. The unqualified auditor's opinion is the opinion that the financial statements are presented fairly. A qualified opinion is that the financial statements are presented fairly in all material respects in accordance with US GAAP, except for a material misstatement that does not however pervasively affect the user's ability to rely on the financial statements. A qualified opinion can also be issued for a scope limitation that is of limited significance. Further the auditor can instead issue a disclaimer, because there is insufficient and appropriate evidence to form an opinion or because of lack of independence. In a disclaimer the auditor explains the reasons for withholding an opinion and explicitly indicates that no opinion is expressed. Finally, an adverse audit opinion is issued when the financial statements do not present fairly due to departure from US GAAP and the departure materially affects the financial statements overall. In an adverse auditor's report the auditor must explain the nature and size of the misstatement and must state the opinion that the financial statements do not present fairly in accordance with US GAAP.
Financial audits are typically performed by firms of practicing accountants who are experts in financial reporting. The financial audit is one of many assurance functions provided by accounting firms. Many organizations separately employ or hire internal auditors, who do not attest to financial reports but focus mainly on the internal controls of the organization. External auditors may choose to place limited reliance on the work of internal auditors. Auditing promotes transparency and accuracy in the financial disclosures made by an organization, therefore would likely reduce such corporations concealmeant of unscrupulous dealings.
Internationally, the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB) is considered as the benchmark for audit process. Almost all jurisdictions require auditors to follow the ISA or a local variation of the ISA.
Financial audits exist to add credibility to the implied assertion by an organisation's management that its financial statements fairly represent the organisation's position and performance to the firm's stakeholders. The principal stakeholders of a company are typically its shareholders, but other parties such as tax authorities, banks, regulators, suppliers, customers and employees may also have an interest in knowing that the financial statements are presented fairly, in all material aspects. An audit is not designed to provide absolute assurance, being based on sampling and not the testing of all transactions and balances; rather it is designed to reduce the risk of a material financial statement misstatement whether caused by fraud or error. A misstatement is defined in ISA 450 as an error, omitted disclosure or inappropriate accounting policy. "Material" is an error or omission that would affect the users decision. Audits exist because they add value through easing the cost of information asymmetry and reducing information risk, not because they are required by law (note: audits are obligatory in many EU-member states and in many jurisdictions are obligatory for companies listed on public stock exchanges). For collection and accumulation of audit evidence, certain methods and means generally adopted by auditors are:
Financial audit is a profession known for its male dominance. According to the latest survey, it found that 70%-80% of the financial auditors are male, with 2% being female and the rest being a mixture of both (Bader, 2018).
Greenwood et al. (1990) defined the audit firm as professional partnership which has a decentralized organization relationship between the national head office and local offices. Local offices can make most decision except for the drawing up professional standard and maintaining it.
The Big Four are the four largest international professional services networks, offering audit, assurance, tax, consulting, advisory, actuarial, corporate finance, and legal services. They handle the vast majority of audits for publicly traded companies as well as many private companies, creating an oligopoly in auditing large companies. It is reported that the Big Four audit 99% of the companies in the FTSE 100, and 96% of the companies in the FTSE 250 Index, an index of the leading mid-cap listing companies. The Big Four firms are shown below, with their latest publicly available data. None of the Big Four firms is a single firm; rather, they are professional services networks. Each is a network of firms, owned and managed independently, which have entered into agreements with other member firms in the network to share a common name, brand and quality standards. Each network has established an entity to co-ordinate the activities of the network. In one case (KPMG), the co-ordinating entity is Swiss, and in three cases (Deloitte Touche Tohmatsu, PricewaterhouseCoopers and Ernst & Young) the co-ordinating entity is a UK limited company. Those entities do not themselves perform external professional services, and do not own or control the member firms. They are similar to law firm networks found in the legal profession. In many cases each member firm practises in a single country, and is structured to comply with the regulatory environment in that country. In 2007 KPMG announced a merger of four member firms (in the United Kingdom, Germany, Switzerland and Liechtenstein) to form a single firm. Ernst & Young also includes separate legal entities which manage three of its four areas: Americas, EMEIA (Europe, The Middle East, India and Africa), and Asia-Pacific. (Note: the Japan area does not have a separate area management entity). These firms coordinate services performed by local firms within their respective areas but do not perform services or hold ownership in the local entities. This group was once known as the "Big Eight", and was reduced to the "Big Six" and then "Big Five" by a series of mergers. The Big Five became the Big Four after the demise of Arthur Andersen in 2002, following its involvement in the Enron scandal.
Costs of audit services can vary greatly dependent upon the nature of the entity, its transactions, industry, the condition of the financial records and financial statements, and the fee rates of the CPA firm. A commercial decision such as the setting of audit fees is handled by companies and their auditors. Directors are responsible for setting the overall fee as well as the audit committee. The fees are set at a level that could not lead to audit quality being compromised. The scarcity of staffs and the lower audit fee lead to very low billing realization rates. As a result, accounting firms, such as KPMG, PricewaterhouseCoopers and Deloitte who used to have very low technical inefficiency, have started to use AI tools. 
The earliest surviving mention of a public official charged with auditing government expenditure is a reference to the Auditor of the Exchequer in England in 1314. The Auditors of the Imprest were established under Queen Elizabeth I in 1559 with formal responsibility for auditing Exchequer payments. This system gradually lapsed and in 1780, Commissioners for Auditing the Public Accounts were appointed by statute. From 1834, the Commissioners worked in tandem with the Comptroller of the Exchequer, who was charged with controlling the issuance of funds to the government.
As Chancellor of the Exchequer, William Ewart Gladstone initiated major reforms of public finance and Parliamentary accountability. His 1866 Exchequer and Audit Departments Act required all departments, for the first time, to produce annual accounts, known as appropriation accounts. The Act also established the position of Comptroller and Auditor General (C&AG) and an Exchequer and Audit Department (E&AD) to provide supporting staff from within the civil service. The C&AG was given two main functions – to authorise the issue of public money to government from the Bank of England, having satisfied himself that this was within the limits Parliament had voted – and to audit the accounts of all Government departments and report to Parliament accordingly.
Auditing of UK government expenditure is now carried out by the National Audit Office. The Australian National Audit Office conducts all financial statement audits for entities controlled by the Australian Government.
In the United States, the SEC has generally deferred to the accounting industry (acting through various organisations throughout the years) as to the accounting standards for financial reporting, and the U.S. Congress has deferred to the SEC.
This is also typically the case in other developed economies. In the UK, auditing guidelines are set by the institutes (including ACCA, ICAEW, ICAS and ICAI) of which auditing firms and individual auditors are members. While in Australia, the rules and professional code of ethics are set by The Institute of Chartered Accountants Australia (ICAA), CPA Australia (CPA) and The National Institute of Accountants (NIA).
Accordingly, financial auditing standards and methods have tended to change significantly only after auditing failures. The most recent and familiar case is that of Enron. The company succeeded in hiding some important facts, such as off-book liabilities, from banks and shareholders. Eventually, Enron filed for bankruptcy, and (as of 2006) is in the process of being dissolved. One result of this scandal was that Arthur Andersen, then one of the five largest accountancy firms worldwide, lost their ability to audit public companies, essentially killing off the firm.
A recent trend in audits (spurred on by such accounting scandals as Enron and Worldcom) has been an increased focus on internal control procedures, which aim to ensure the completeness, accuracy and validity of items in the accounts, and restricted access to financial systems. This emphasis on the internal control environment is now a mandatory part of the audit of SEC-listed companies, under the auditing standards of the Public Company Accounting Oversight Board (PCAOB) set up by the Sarbanes-Oxley Act.
Many countries have government sponsored or mandated organizations who develop and maintain auditing standards, commonly referred to generally accepted auditing standards or GAAS. These standards prescribe different aspects of auditing such as the opinion, stages of an audit, and controls over work product (i.e., working papers).
Some oversight organisations require auditors and audit firms to undergo a third-party quality review periodically to ensure the applicable GAAS is followed.
The following are the stages of a typical audit:
After the auditor has completed all procedures for each audit objective and for each financial statement account and related disclosures, it is necessary to combine the information obtained to reach an overall conclusion as to whether the financial statements are fairly presented. This highly subjective process relies heavily on the auditor’s professional judgment. When the audit is completed, the CPA must issue an audit report to accompany the client’s published financial statements.
Corporations Act 2001 requires the auditor to:
One of the major issues faced by private auditing firms is the need to provide independent auditing services while maintaining a business relationship with the audited company.
The auditing firm's responsibility to check and confirm the reliability of financial statements may be limited by pressure from the audited company, who pays the auditing firm for the service. The auditing firm's need to maintain a viable business through auditing revenue may be weighed against its duty to examine and verify the accuracy, relevancy, and completeness of the company's financial statements. This is done by auditor.
Numerous proposals are made to revise the current system to provide better economic incentives to auditors to perform the auditing function without having their commercial interests compromised by client relationships. Examples are more direct incentive compensation awards and financial statement insurance approaches. See, respectively, Incentive Systems to Promote Capital Market Gatekeeper Effectiveness and Financial Statement Insurance.
Currently, many entities being audited are using information systems, which generate information electronically. For the audit evidences, auditors get dynamic information generated from the information systems in real time. There are less paper documents and pre-numbered audit evidences available, which leads a revolution to audit mythology. 
A control environment, also called "Internal control environment", is a term of financial audit, internal audit and Enterprise Risk Management. It means the overall attitude, awareness and actions of directors and management (i.e. "those charged with governance") regarding the internal control system and its importance to the entity. They express it in management style, corporate culture, values, philosophy and operating style, the organisational structure, and human resources policies and procedures.Greek Financial Audit, 2004
The Greek Financial Audit was a 2004 investigation into the true extent of Greece's public finances. It examined government revenue, spending and the level of Greek government borrowing.International Standards on Auditing
International Standards on Auditing (ISA) are professional standards for the performance of financial audit of financial information. These standards are issued by International Federation of Accountants (IFAC) through the International Auditing and Assurance Standards Board (IAASB). According to Olung M (CAO - L) ISA guides the auditor to add value to the assignment hence building confidence of investors.Iowa State Auditor
The Iowa State Auditor is the State Auditor of the Government of Iowa, United States. The office's mission is to "serve as the taxpayers' watchdog" by "ensuring that government officials use taxpayer dollars for the intended purposes to benefit the public".The office is provided for by the Constitution of Iowa, which requires that the Auditor be elected every four years, simultaneously with the rest of the state's executive branch, in midterm elections. The State Auditor is annually required to make a complete audit of the financial accounts of every department of the Government of Iowa. The office supervised by the Auditor of State includes three divisions: Administration, Financial Audit, and Performance Investigation.Jaén Tram
The Jaén Tramway (Spanish: Tranvía de Jaén) is a tramway/light rail system constructed in the city of Jaén, Spain (Andalusia), which was built in 2009–2011 but operated only very briefly for passenger service, never opened for full regular service, and now might never open.Work began in 2009, and five low-floor Alstom Citadis trams, model 302, were acquired. The completed line was ceremonially inaugurated on 2 May 2011, and limited free "trial service" began on 3 May 2011. However, that service operated for only a little more than two weeks and was then suspended, "due to a political dispute about withdrawal of competing bus services" and the need to secure funds to pay for the line's operation.The new line continued to be "mothballed" through 2012, and in early 2013 the city government – which owns the system – announced plans to offer the entire system (line and cars) for sale at auction, because it lacked the money to operate it. A one-year financial audit in 2012 found that the line would not generate nearly as much revenue as had originally been forecast, and the resultant need for a much larger operating subsidy exceeded the city's means. The city hopes to find a private company willing to operate the line, but there is a possibility the system will be dismantled. As at January 2017, the line was still not operating.
The 4.7-kilometre (2.9 mi) line was built fully at-grade (entirely on the surface), with track and station platforms separated from traffic. Intersections are the only contact points with motor vehicular traffic.Kostas Karamanlis
Konstantinos A. Karamanlis (Greek: Κωνσταντίνος Αλεξάνδρου Καραμανλής; born 14 September 1956), commonly known as Kostas Karamanlis (Greek: Κώστας Καραμανλής, pronounced [ˈkostas karamanˈlis]), is a Greek politician who served as Prime Minister of Greece from 2004 to 2009. He was also president of the centre-right New Democracy party, founded by his uncle Konstantinos Karamanlis, from 1997 to 2009, and he is currently a member of the Hellenic Parliament.
Karamanlis was first elected as a member of the Hellenic Parliament for New Democracy in 1989 and became president of the party in 1997. After leading the opposition in the Hellenic Parliament for seven years and his narrow defeat in the 2000 parliamentary election, he served as the 181st Prime Minister of Greece for two consecutive terms, winning the 2004 election, with an all-time record number of votes, and again in 2007. However, he asked for mid-term general elections in 2009, as his party enjoyed a narrow parliamentary majority that could not guarantee a stable government needed to handle the Greek financial crisis. Eventually, Karamanlis was defeated and resigned as president of New Democracy after twelve years as the party's leader, being active in politics though as a member of the parliament.National debt of the United States
The national debt of the United States was $22.03 trillion (as of April 4, 2019). This is the total debt, or unpaid borrowed funds, carried by the federal government of the United States, which is measured as the face value of the currently outstanding Treasury securities that have been issued by the Treasury and other federal government agencies. The terms national deficit and national surplus usually refer to the federal government budget balance from year to year, not the cumulative amount of debt. A deficit year increases the debt, while a surplus year decreases the debt as more money is received than spent.
The US national debt can be divided between intragovernmental debt and publicly held debt.
There are two components of gross national debt:
Debt held by the public, such as Treasury securities held by investors outside the federal government, including those held by individuals, corporations, the Federal Reserve System, and foreign, state and local governments.
Debt held by government accounts or intragovernmental debt, are non-marketable Treasury securities held in accounts of programs administered by the federal government, such as the Social Security Trust Fund. Debt held by government accounts represents the cumulative surpluses, including interest earnings, of various government programs that have been invested in Treasury securities.In general, government debt increases as a result of government spending, and decreases from tax or other receipts, both of which fluctuate during the course of a fiscal year. In practice, Treasury securities are not issued or redeemed on a day-by-day basis, and may also be issued or redeemed as part of the federal government's macroeconomic management operations.
Historically, the US public debt as a share of gross domestic product (GDP) has increased during wars and recessions, and subsequently declined. The ratio of debt to GDP may decrease as a result of a government surplus or due to growth of GDP and inflation. For example, debt held by the public as a share of GDP peaked just after World War II (113% of GDP in 1945), but then fell over the following 35 years. In recent decades, aging demographics and rising healthcare costs have led to concern about the long-term sustainability of the federal government's fiscal policies. The aggregate, gross amount that Treasury can borrow is limited by the United States debt ceiling.As of December 31, 2018, debt held by the public was $16.1 trillion and intragovernmental holdings were $5.87 trillion, for a total or "National Debt" of $21.97 trillion. Debt held by the public was approximately 76.4% of GDP in Q3 2018. In 2017, the US debt-to-GDP ratio was ranked 43rd highest out of 207 countries. The Congressional Budget Office forecast in April 2018 that the ratio will rise to nearly 100% by 2028, perhaps higher if current policies are extended beyond their scheduled expiration date. The United States has the largest external debt in the world and the 14th largest government debt as a % of GDP in the world.Walkthrough
A walkthrough may refer to one of the following topics:
Strategy guide (video games)
Video game walkthrough
Walk-through test, a component of a financial auditZouk (club)
Zouk is a nightclub in Singapore and Kuala Lumpur. The club is named after a French creole word for 'party'. It has won the Singapore Tourism Board's "Best Nightspot Experience" award 6 times, between 1996 and 2007. Zouk was ranked as number 10 on DJ Magazine's list of Top 100 clubs in the world in 2006, 2007 and 2010. In 2017, Zouk Singapore earned its highest ranking yet at number 3, the top entry for clubs across Asia.
In September 2015, its founder, Lincoln Cheng, sold the rights of the Zouk brand to Genting Hong Kong, an affiliate of the Genting Singapore. The brand and its business was valued at S$40 million by financial audit firm Ernst & Young in 2013.