Audit

Official examination of accounts, financial statements, operations, or systems.

auditing financial audit

An audit is an official examination of accounts, financial statements, operations, or systems to verify their accuracy and compliance with regulations. It can also refer to a systematic review of a process or system.

Pronunciation

/ˈɔːdɪt/

Etymology

The term 'audit' comes from the Latin word 'audire,' meaning 'to hear,' referring to the original practice of auditors listening to accounts.

Explain Like I’m 5

An audit is like a check-up for businesses or organizations, where experts look closely at their money and how they do things to make sure everything is correct.

Fun Facts

The word 'audit' comes from the Latin word 'audire,' meaning 'to hear
' Early audits involved listening to accounts being read aloud
The Sarbanes-Oxley Act (SOX) in 2002 significantly increased audit requirements for publicly traded companies

FAQ

What is an audit? It's an official examination of records
Who conducts audits? Certified Public Accountants (CPAs) or other qualified professionals
Why are audits important? They ensure accuracy and compliance with regulations

Synonyms — Similar or Related Terms

scrutiny inspection review

Hypernyms — Broader Categories

examination review

Hyponyms — Specific Examples

financial audit performance audit compliance audit

Holonyms — Wholes or Groups

accounting governance

Indexes

financial legal process

Built by Tim Jones