An independent examination of an organization’s financial statements to ensure they accurately reflect the financial health of the business.

To verify the accuracy and reliability of financial information, detect fraud, comply with regulations, and enhance credibility.

Public companies, government agencies, and organizations that receive government funding are typically required to have audits. However, private companies also undergo audits for various reasons, for example, to comply with regulations.

The frequency depends on the organization’s size, industry, and regulatory requirements. Annual audits are common.

The process involves planning, gathering evidence, evaluating financial statements, and issuing an audit report.

An auditor’s formal expression of opinion on the fairness of the financial statements.

Internal audits are conducted by an organization’s employees, while external audits are performed by independent auditors.