What is an audit designed to ensure?

An audit is primarily designed to ensure compliance with accounting standards and accuracy in financial reporting. The core purpose of an audit is to provide an independent evaluation of financial statements, ensuring they are presented fairly and accurately in accordance with established accounting principles. By doing so, audits help enhance the credibility of financial statements, which is crucial for stakeholders, including investors, regulators, and management.

Auditors assess whether the financial information reflects the true financial position of the organization, which includes verifying that transactions are recorded correctly, financial controls are in place, and that the financial statements are free from material misstatements. This assurance is essential for maintaining trust in financial markets and supports informed decision-making by all stakeholders involved. While maximizing company profits and managing financial risks are important aspects of business operations, they are not the direct objectives of an audit. Similarly, while meeting market expectations is critical for a company's reputation and performance, it does not fall within the primary scope of an audit's objectives.