Audits are generally requested by lenders, key stakeholders, grantors, investors, regulatory requirement, and by organizational documents.
Audits provides a level of assurance that the financial statements and related notes are fairly stated. The auditor performs various audit tests, based on audit risk assessments of the entity, in order to issue an opinion on the financial statements.
Other reduced levels of assurance on financial statements are reviewed financial statements, with limited assurance and the compilation with the lowest level of assurance.
Reviewed financial statements, including notes to the financial statements are tested using analytic tests and inquiry, and provides limited assurance.
Compiled financial statements can include notes to the financial statements or can be omitted, and have no assurance.