Auditing

Auditing is the inspection of the accounting records and procedures of a business or organisation, by a trained accountant, mainly for the purpose of forming an opinion on the fairness and truth of the financial statements. Usually this is conducted by someone from the company itself (internal audit) or by a third-part auditor (independent audit).

An independent audit examines not just the finances of a business, but every other area as well. This is generally to make sure that the company’s procedures are being followed, and to determine whether illegal activity such as embezzlement took place. A tax audit determines whether the appropriate tax was paid.