What is the purpose of a financial statement audit?

The purpose of a financial statement audit is to provide an independent assessment of the fairness and accuracy of an entity's financial statements. This involves examining the financial records and internal controls to ensure that the statements are presented in accordance with relevant generally accepted accounting principles (GAAP) or other applicable standards. The audit culminates in an auditor's opinion, which expresses whether the financial statements are free of material misstatement, thus enhancing confidence among stakeholders such as investors, creditors, and regulatory agencies.

While other options like enhancing organizational profits, developing new accounting standards, and managing financial resources efficiently may be important aspects of financial management, they do not capture the primary objective of a financial statement audit, which is to validate the integrity of the financial information reported. The audit is not aimed at profit enhancement or setting standards, but rather at ensuring transparency and accountability in financial reporting.