Audit

An audit is a formal examination and evaluation of the financial records, operations, or systems of an individual, business, or entity.

It is typically conducted to ensure accuracy, transparency, and compliance with laws or regulations.

Most people associate audits with tax audits, where government agencies review tax returns to confirm the correct amount of tax has been paid. However, audits can also be internal (performed by a company’s employee) or external (done by independent auditors).

Audits help identify errors, fraud, or inefficiencies, and provide stakeholders such as investors or regulators with confidence in financial reporting and operational integrity.