In accounting, an audit refers to a systematic review and assessment of a company’s financial records, transactions, and statements by an independent auditor or accounting firm.
The objective of an audit is to determine whether the financial statements and records accurately reflect the company’s financial position, performance, and financial affairs.
During an audit, the auditor examines the company’s internal controls, checks the accuracy of its financial statements, and assesses its accounting operations.
The auditor issues an audit report that outlines the audit’s scope, findings, and recommendations based on the auditor’s opinion of the company’s financial health and compliance with applicable accounting standards and regulations.
Audits are typically conducted annually, but they can also be performed quarterly, depending on the company’s size and regulatory requirements.
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