What is an audit?
Audit
An audit is an independent examination of a company's financial records to determine whether they are accurate and comply with applicable accounting standards and regulations. Audits help build confidence in financial reporting for owners, investors, lenders, and regulators.
Example: An external audit firm reviews a company's financial statements and supporting records before the statements are shared with investors or lenders.
Related terms: Audit Trail, Financial Statements, General Ledger
