Explore commonly used personal finance terms.
An audit is an independent examination of financial statements to verify their accuracy, compliance, and completeness. Conducted by certified auditors, audits are essential for publicly traded companies, ensuring credibility with shareholders and compliance with regulations. Audits can be external (by a third-party firm) or internal (by the company’s own audit team) and may uncover fraud, misstatements, or operational inefficiencies, providing stakeholders with a true picture of a company’s financial health.
