Audit Definition

Term Definition
In accounting, an audit is a review of your business’s financial statements. The information provided in the financial reports is evaluated and analyzed. Auditors look for trends to help your business grow, as well as errors, inconsistencies, and omissions that may indicate criminal activity.

Extended Definition
An audit is a detailed review of your financial records. Audits can be conducted by in-house employees or by a third party. If the Internal Revenue Service (IRS) requests an audit, the agency will look at the accuracy of your records, as well as  proof required to support business expenses that you claimed.

Related Article:
What Is an Audit?