Which audit type is primarily focused on the financial health and accuracy of financial statements?

The primary focus of a financial audit is to assess the financial health and accuracy of an organization's financial statements. This type of audit evaluates whether the financial statements present a true and fair view of the organization’s financial position in accordance with established accounting standards and principles. Financial audits examine various aspects such as the validity of financial transactions, the correctness of account balances, and adherence to accounting regulations, ensuring that the financial reporting is reliable for stakeholders to make informed decisions.

In contrast, a performance audit focuses on the effectiveness and efficiency of an organization's operations, a compliance audit assesses adherence to applicable laws and regulations, and an operational audit reviews the processes and procedures in place to ensure optimal performance within an organization. Each of these audits serves a distinct purpose and context, with the financial audit being specifically tailored to financial accuracy and health.