Final answer:
The process of examining the financial statements and records of a company to render an opinion is called an audit. Auditors review financial statements and supporting documents, perform tests and procedures, and issue an opinion on the fairness and reliability of the financial statements.
Step-by-step explanation:
The process of examining the financial statement and records of a company to render an opinion is called an audit. An audit is conducted by an independent auditing firm to assess the accuracy and integrity of the financial information presented by the company.
The auditors will review the financial statements, such as the balance sheet, income statement, and cash flow statement, as well as supporting documents such as bank records, invoices, and contracts. They will also perform tests and procedures to verify the accuracy of the financial information and assess the company's compliance with relevant accounting standards and regulations.
Based on their findings, the auditors will issue an opinion on the fairness and reliability of the financial statements. The opinion can be unqualified (indicating that the financial statements are presented fairly), qualified (indicating some concerns or limitations), adverse (indicating significant issues), or a disclaimer (indicating a lack of sufficient evidence to form an opinion).