An audit refers to the evaluation of a company’s or business entity’s financial matters. The financial statements of a business undergo a comprehensive examination in an impartial and objective manner. The purpose of auditing is to ensure the accuracy of the financial statements maintained by the business, verifying that they accurately represent the reported financial transactions. Professionals in accounting and finance known as auditors carry out this examination.

The audit process can be conducted either internally by company staff or externally by a certified external agency.