What is the objective of conducting a financial audit?

The objective of conducting a financial audit is fundamentally centered on ensuring the accuracy and reliability of financial statements. A financial audit involves an independent examination of an organization's financial records and reporting processes. The purpose is to assess whether the financial statements present a true and fair view of the organization’s financial position and performance, in accordance with the relevant accounting standards.

By conducting a financial audit, stakeholders such as investors, creditors, and regulatory agencies can have confidence in the information reported by the company. This not only helps to enhance transparency and accountability, but also reduces the risk of errors and fraud. Accurate financial statements are essential for informed decision-making, strategic planning, and compliance with laws and regulations.

The other options do not align with the primary objective of a financial audit. Increasing company sales, promoting product lines, and analyzing customer satisfaction pertain more to marketing and operational strategy rather than the core financial verification and assessment purpose of an audit.