What is an Audit?
An audit is a systematic examination and evaluation of an organization’s financial records, processes, systems, or operations to ensure accuracy, compliance, and efficiency. Audits can be conducted internally by a company’s employees or externally by independent auditors.Types of audits include:
- Financial Audit: Examines financial statements for accuracy and compliance with accounting standards.
- Operational Audit: Reviews operational efficiency and effectiveness.
- Compliance Audit: Ensures adherence to laws, regulations, or policies.
- IT Audit: Assesses the integrity and security of technology systems.
Audits help identify risks, ensure transparency, and build stakeholder trust.