Audit

Audit,

Definition of Audit:

  1. Almost all companies receive a yearly audit of their financial statements, such as the income statement, balance sheet, and cash flow statement. Lenders often require the results of an external audit annually as part of their debt covenants. For some companies, audits are a legal requirement due to the compelling incentives to intentionally misstate financial information in an attempt to commit fraud. As a result of the Sarbanes-Oxley Act (SOX) of 2002, publicly traded companies must also receive an evaluation of the effectiveness of their internal controls.

  2. An official inspection of an individuals or organizations accounts, typically by an independent body.

  3. Quality control: Periodic (usually every six months) onsite-verification (by a certification authority) to ascertain whether or not a documented quality system is being effectively implemented.

  4. Accounting: Systematic examination and verification of a firms books of account, transaction records, other relevant documents, and physical inspection of inventory by qualified accountants (called auditors). See also external audit and internal audit.

  5. Conduct an official financial examination of (an individuals or organizations accounts).

  6. The term audit usually refers to a financial statement audit. A financial audit is an objective examination and evaluation of the financial statements of an organization to make sure that the financial records are a fair and accurate representation of the transactions they claim to represent. The audit can be conducted internally by employees of the organization or externally by an outside Certified Public Accountant (CPA) firm.

  7. Attend (a class) informally, not for academic credit.

Synonyms of Audit

Inspect, Examine, Survey, Look over, Go over, Go through, Scrutinize, Probe, Vet, Investigate, Look into, Inquire into, Check, Check into, Assess, Appraise, Evaluate, Review, Analyse, Study, Pore over, Peruse, Sift, Dissect, Go over with a fine-tooth comb, Delve into, Dig into, Accountancy, Accounting, Analysis, Auditing, Balance, Balance the books, Bookkeeping, Check, Check and doublecheck, Check out, Check over, Checkup, Collate, Confirm, Control, Corrective, Cost accounting, Cost system, Cost-accounting system, Cross-check, Demonstrate, Double-check, Double-entry bookkeeping, Inspect the books, Inspection, Inventory, Investigation, Monetary arithmetic, Overhaul, Perlustration, Probe, Prove, Recheck, Review, Scan, Scrutiny, Single-entry bookkeeping, Survey, Take account of, Take stock, Test, Triple-check, Validate, Verify, View, Attend, Be present at, Be an observer at, Observe, Watch

How to use Audit in a sentence?

  1. The company couldnt figure out why the accounts in the Boston office were always in the red until they did an internal audit that discovered that the accounting department had been systematically underbilling the clients.
  2. External audits can include a review of both financial statements and a company's internal controls.
  3. He made use of the knowledge gleaned from economics classes he audited.
  4. External audits are commonly performed by Certified Public Accounting (CPA) firms and result in an auditor's opinion which is included in the audit report.
  5. An unqualified, or clean, audit opinion means that the auditor has not identified any material misstatement as a result of his or her review of the financial statements.
  6. Companies must have their accounts audited.
  7. I was called the audit man and put in charge of something I didnt know a lot about, but was excited to try out.
  8. There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits.
  9. Audits cant be expected to detect every fraud.
  10. The task of conducting the audit was necessary as the company had been dealing with many processes that required stringent bookkeeping.
  11. Internal audits serve as a managerial tool to make improvements to processes and internal controls.

Meaning of Audit & Audit Definition