Feiler, the sole owner of a small hardware business, has been told that the business should have financial statements reported on by an independent certified public accountant.

Having some bookkeeping experience, Feiler has personally prepared the company's financial statements and does not understand why the statements should be audited by a CPA. Feiler discussed the matter with Farber, a CPA, and asked Farber to explain why an audit is considered important.

Required:

1. Describe the objectives of a financial statement audit.
2. Identify ten ways in which a financial statement audit may be beneficial to Feiler.