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.
Share it:  Cite

More from this Section

  • Trade Creditors
    Trade Creditors organisations, which are owed money for goods and services supplied. ...
  • Savings and loan association (S&L)
    Corporation that traditionally offered savings accounts with interest rates higher than ...
  • Surrender-cost index
    Surrender-cost index is a method of measuring the cost of an insurance policy to an insured ...
  • Retention
    Retention refers risk management technique in which an individual or a firm retains part ...
  • Exchange Rate Risk
    Exchange Rate Risk is the risk that changes in currency exchange rates may have an unfavourable ...