Financial audits can be useful in identifying performance problems or whether the organization has a solid financial foundation. Financial statements provide information used for financial control of an organization. There are two main financial statements, a balance sheet and an income statement. A balance sheet shows the financial position of an organization keeping in mind assets and liabilities at a specific point in time. An income statement summarizes a company's financial performance for a given period of time. The income statement shows revenue coming into the organization from all sources and subtracts all expenses, such as: goods sold, interest, taxes, and depreciation. Knowledge of a manager's financial situation can help them manage their employees more effectively and be able to see what needs to be done to create more revenue, which is the ultimate goal in business, creating a