Define: Audit

UK Accounting Glossary

Definition: Audit


Quick Summary of Audit


An audit is the independent examination of, and expression of opinion on, financial statements of an entity.




What is the dictionary definition of Audit?

Dictionary Definition


An inspection of the accounting procedures and records by a trained accountant or CPA.

Also:

  1. An audience; a hearing.
  2. An examination in general.
  3. A judicial examination.

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Full Definition of Audit


An audit is the examination of records and reports of a company, in order to check that what is provided is relevant, and reflects reality. That is to say, to ensure that all assets and liabilities are properly recorded in the balance sheet, and, all profits and losses are properly assessed.

An audit assessment is typically implemented through two methods, by assessing internal control procedures and by checking the consistency of items in the books.


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Examples of Audit in a sentence


The company carries out an audit at the end of each financial year.

As per usual, the annual audit will take place in April.

The internal auditing function reports directly to the Audit Committee.

Government audits have traditionally been concerned with the financial and regularity considerations.

The bank first became aware of the issue once it had carried out an internal audit.

A qualified audit report should leave the reader in no doubt as to its meaning and implications.


Audit FAQ's



Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/audit/
Modern Language Association (MLA):
Audit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 15, 2019 https://payrollheaven.com/define/audit/.
Chicago Manual of Style (CMS):
Audit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/audit/ (accessed: November 15, 2019).
American Psychological Association (APA):
Audit. PayrollHeaven.com. Retrieved November 15, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/audit/

Definition Sources


Definitions for Audit are sourced/syndicated from:


This glossary post was last updated: 23rd December 2018.