Definition

Audit

Audit is the examination of the books and accounts of a company to examine the books and accounts of a company.


 

Audit is an examination of a company's accounting records and books conducted by an outside professional in order to determine whether the company is maintaining records according to generally accepted accounting principles.


Audit refers a CPA” S examination of a company’s financial statements in order to express an opinion about the fairness of the statements in order to express an opinion about the fairness of the statements in accordance with generally accepted accounting principles.

Webster Dictionary Meaning

1. Audit
- An audience; a hearing.
- An examination in general; a judicial examination.
- The result of such an examination, or an account as adjusted by auditors; final account.
- A general receptacle or receiver.
2. Audit
- To settle or adjust an account.
3. Audit
- To examine and adjust, as an account or accounts; as, to audit the accounts of a treasure, or of parties who have a suit depending in court.
References
Share it:  Cite

More from this Section

  • Interest Rate Swap
    An interest rate swap is an arrangement whereby one party exchange one set of interest ...
  • Perfect Competition
    Perfect Competition is an abstract assumption, central to neoclassical economics, in which ...
  • Capital Adequacy Ratio (CAR)
    Capital Adequacy Ratio (CAR) is a ratio of total capital divided by risk-weighted assets ...
  • Market Risk
    The risk incurred by the FIs (Financial institutions) in the trading of assets and liabilities ...
  • Duration gap
    Duration gap is the difference between the duration of a bank’s assets and the duration ...