When considering the purchase or sale of a municipal bond, there are many important factors an investor should consider. One such factor is the issuer’s financial condition and performance. The audited financial report is a source of information about an issuer’s finances, financial position and operating results prepared by an independent party such as a certified public accounting firm or a state auditor. The audited annual financial report provides a snapshot of a municipal bond issuer‘s financial and operating condition at a specified point in time. A municipal bond issuer’s annual audited financial report offers a roadmap to understanding the financial health and financial risks that may impact the issuer’s ability to pay principal and interest on its bonds.