Audit simply refers to examine and give comments on the items verified. Financial audit implies an examination of the books of accounts and other relevant records. This will provide the auditor necessary information to give his opinion, whether the accounts are properly maintained and complied with necessary statutory accounting and financial reporting and auditing standards.
A financial statement audit is an independent appraisal of the financial statement prepared by the organization. The basic objective of a financial statement audit is to provide an independent or third-party assurance that the management has, in its financial statements, presenting a "true and fair" view of a company's financial performance.
The result of this examination is a report by the auditor, attesting to the fairness of presentation of the financial statements and related disclosures. The auditor's report must accompany the financial statements when they are issued to the intended recipients or stakeholders.