Audit

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DEFINITION of 'Audit'

1. An unbiased examination and evaluation of the financial statements of an organization. It can be done internally (by employees of the organization) or externally (by an outside firm).

2. An IRS examination of a taxpayer's return or other transactions. The IRS performs this examination to verify the accuracy of these filings.

INVESTOPEDIA EXPLAINS 'Audit'

1. Auditors ensure the fiscal accuracy and responsibility of organizations.

2. This is the ultimate fear of nearly every taxpayer.

RELATED TERMS
  1. Substitute Return

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  2. Attest Function

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  3. Correspondence Audit

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  4. Revenue Act Of 1862

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  5. Independent Auditor

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  6. Auditor's Report

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