To enhance the degree of confidence in the financial
statements, a qualified external party (an auditor) is
engaged to examine the financial statements,
including related disclosures produced by
management, to give their professional opinion on
whether they fairly reflect, in all material respects,
the company’s financial performance over a given
period(s) (an income statement) and financial
position as of a particular date(s) (a balance sheet) in
accordance with relevant GAAP. In many cases this is
required by law