The-definition.com

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

  • Economies of scope
    Economies of scope is the ability to use one resource to provide many different products ...
  • Change in accounting principle
    A change in accounting principle occurs when the principle used in the current year is ...
  • Trade balance
    Trade balance is the difference between merchandise exports and imports. ...
  • Asian Clearing Union (ACU)
    Asian Clearing Union (ACU) is the simplest form of payment arrangements whereby the members ...
  • book-to-bill
    The book-to-bill ratio is the ratio of orders taken (booked) to products shipped and bills ...