What is the main objective of a financial statement audit?

The main objective of a financial statement audit is to express an opinion on the financial statements based on their compliance with applicable financial reporting frameworks. This involves evaluating whether the financial statements are presented fairly in accordance with the relevant accounting principles, such as IFRS or GAAP. The auditor assesses the accuracy and completeness of the financial statements, which provides stakeholders—like investors, creditors, and regulatory agencies—assurance that the financial information is reliable.

This independent assessment is crucial as it enhances the credibility of the financial statements and helps users make informed decisions. The auditor's opinion signifies whether the financial statements are free from material misstatement, providing confidence to users regarding the financial health and performance of the entity.

Other objectives, such as settling accounts between partners, providing tax advantages, or ensuring profitability, do not capture the essence of what an audit is fundamentally about. Instead, these aspects might relate more to specific circumstances or decisions made by businesses rather than the primary aim of conducting a financial statement audit.