Audit

An audit is when the accounting records of a company is inspected to verify if all the entries have been made as per accounting standards. Company laws across the world require periodic audits to scrutinize the records of a company, to keep a check on economic offenses and to ensure true disclosure. Audit is usually carried out by professional accountants who belong to independent agencies.

Related Terms

• Assets
• Accrual Basis Accounting
• Amortization
• Audit Trail