What is the role of a CPA when auditing financial statements?

The role of a CPA (Certified Public Accountant) when auditing financial statements is primarily to ensure compliance with accounting standards and to verify the accuracy of the financial information presented. This responsibility involves a systematic examination of the financial records and statements of a company to provide an objective evaluation of its financial position and performance.

A CPA will assess whether the financial statements are prepared in accordance with generally accepted accounting principles (GAAP) or other relevant accounting frameworks. This ensures that the financial reports are not only accurate but also fairly represent the company’s financial health. The auditor's duty includes evaluating internal controls, identifying any discrepancies or areas that require improvement, and providing assurance that the statements can be relied upon by stakeholders, including investors, creditors, and regulatory agencies.

This auditing process is critical as it helps maintain transparency and trust in the financial reporting system, promoting accountability among organizations. The focus of the CPA is not on providing legal advice, marketing strategies, or solely on internal operations, but rather on ensuring factual and compliant financial reporting.