I keep hearing this term from my accountant friend and have absolutely no idea what it means. I tried googling it but that just left me even more confused than I was.
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I was a third-party financial statement auditor.
An accountant at the company being audited creates information throughout the year they are professing to be true and faithful as the normal course of business.
The investors, owners, and other stakeholders rely on that information to be fair and truthful and accurate to make decisions.
Auditors come into the company as a third-party and perform various investigative tests to ensure the information is fair, truthful, and accurate. They provide a statement saying they have validated the financial statements. The investors and stakeholders now can have more trust in the financial information created by the company’s accounting team.
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