Finantsaudi

Finantsaudi, in Estonian usage often translated as financial audit, is an independent examination of an organization's financial statements and accounting records conducted to form an opinion on whether the statements present a true and fair view of the entity's financial position and performance for a given period, in accordance with the applicable financial reporting framework. It can be statutory, required by law for publicly held companies, insurers, banks, or other regulated entities, or voluntary for private organizations seeking assurance for investors, lenders, or management.

Audits are typically performed by external auditors who are independent of the entity. They follow professional standards such as the International Standards on Auditing (ISA) or other national equivalents. Key concepts include independence, professional skepticism, materiality, and risk assessment. The audit examines internal controls, accounting policies, significant estimates, and disclosures, and obtains sufficient evidence to support the auditor's conclusions.

The process usually comprises planning and risk assessment, evidence gathering and testing, evaluating misstatements, and forming an audit opinion. The auditor's report communicates the opinion, indicating whether the financial statements are presented fairly in all material respects. In some cases the opinion may be unqualified, qualified, adverse, or a disclaimer of opinion. Management remains responsible for the preparation of the financial statements and for the effectiveness of internal controls.

Finantsaudi aims to enhance the credibility of financial reporting, facilitate decision-making, and support regulatory compliance, while recognizing limitations such as sampling, inherent risk, and the potential for undetected misstatements.