Audit is the examination or inspection of various books of accounts by an auditor followed
by physical checking of inventory to make sure that all departments are following
documented system of recording transactions. It is done to ascertain the accuracy of financial
statements provided by the organization.
Audit is an important term used in accounting that describes the examination and verification
of a company’s financial records. It is to ensure that transactions are represented fairly and
accurately.
Also, audits are performed to ensure that financial statements are prepared in accordance
with the relevant accounting standards.
