An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon." [1] · An audit is an unbiased examination of the financial statements of an individual or organization. Three main types are external audits, internal audits, and IRS audits. Auditing is defined as the on-site verification activity, such as inspection or examination, of a process or quality system, to ensure compliance to requirements. An audit can apply to an entire organization or might be specific to a function, process, or production step. The meaning of AUDIT is a formal examination of an organization's or individual's accounts or financial situation. How to use audit in a sentence. More simply, an audit is an examination of a company’s financial records to determine if they are fairly represented, free from material error and in accord with what are called Generally Accepted Accounting Principles (GAAP). · An audit provides a high level of assurance by thoroughly testing transactions, verifying balances, and assessing internal controls. A review, on the other hand, offers only limited assurance, relying mainly on analytical procedures and inquiries rather than detailed testing. This comprehensive guide explains what auditing means, explores different types of audits, and outlines the career opportunities available in this essential field.
