What would be a potential reason for a financial audit?

A financial audit serves the primary purpose of ensuring that an organization is operating within the legal frameworks set by various laws and regulations. Conducting an audit helps to verify that financial statements are accurate, complete, and compliant with generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS). This compliance not only instills confidence among stakeholders, such as investors, employees, and regulators, but it also aids in identifying discrepancies or inefficiencies that could affect the organization’s financial health.

In contrast, increasing sales revenue, raising new capital, and forecasting market trends focus on business growth and operational strategies rather than the compliance and accuracy of financial reporting. These aspects are essential for a company’s success but are not the primary goals of conducting a financial audit. The audit's role in compliance directly contributes to an organization's integrity and public trust, which can ultimately support growth objectives over time.