Audit

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Audit

An examination of a company's accounting records and books conducted by an outside professional in order to determine whether the company is maintaining records according to generally accepted accounting principles. See: accountant's opinion.

Audit

1. The process of reviewing activities to identify inefficiencies, reduce costs, and otherwise achieve organizational objectives. Audits may investigate potential theft or fraud and ensure compliance with applicable regulations and policies. They also help ensure the accuracy of reports. Audits are an essential part of a company's efficiency.

2. In taxation, the process in which the tax collection agency reviewing the reports of an individual or company to see if all income, deductions, and/or credits reported accurately reflect reality. This is done to ensure that each individual or company pays his/her/its full tax liability. Audits are conducted on a random basis, or when something appears remiss on a tax return. See also: Tax avoidance, Tax evasion.

audit

An examination of an organization's financial documents in order to determine whether the records and reports are valid and the information is fairly presented. An independent audit is usually conducted by a Certified Public Accountant who then issues an opinion as to whether the statements accurately and fairly represent the firm's operations and financial position. See also external audit, internal audit.

Audit.

An audit is a professional, independent examination of a company's financial statements and accounting documents following generally accepted accounting principles (GAAP).

An IRS audit, in contrast, is an examination of a taxpayer's return, usually to question the accuracy or acceptability of the information the return reports.

audit

  1. the legal requirement for a JOINT-STOCK COMPANY to have its BALANCE SHEET and PROFIT-AND-LOSS ACCOUNT (the financial statements) and underlying accounting system and records examined by a qualified AUDITOR, so as to enable an opinion to be formed as to whether such financial statements show a TRUE AND FAIR VIEW of the company's state of affairs and that they comply with the relevant statutes. Auditing involves inspecting documentary evidence of transactions such as INVOICES, STATEMENTS and DELIVERY NOTES to ensure that the DOUBLE-ENTRY accounting entries are complete and authentic.

    Where the auditor is satisfied that the financial statements show a ‘true and fair view’ he will report this to the SHAREHOLDERS in the ANNUAL REPORT AND ACCOUNTS. However, if he is not satisfied that the financial statements show a ‘true and fair view’ or he is unhappy about any explanations given by the managers, then he may make a ‘qualified report’ to the shareholders expressing his precise misgivings.

  2. internal audits of accounting procedures, marketing activities, production operations, quality control systems, and safety may be undertaken to monitor and review the efficiency and effectiveness with which these various activities are undertaken. In addition, a company may undertake a value-for-money audit, to evaluate whether the organization is operating effectively. See also MARKETING AUDIT.

audit

the legal requirement for a JOINT-STOCK COMPANY to have its BALANCE SHEET and PROFIT-AND-LOSS ACCOUNT (the financial statements) and underlying accounting system and records examined by a qualified auditor, so as to enable an opinion to be formed as to whether such financial statements show a true and fair view and that they comply with the relevant statutes. See also ENVIRONMENTAL AUDIT, VALUE FOR MONEY AUDIT.

Audit

An IRS examination and verification of a taxpayer's return or other transactions with tax consequences. An office audit is an audit by the IRS that is conducted in the agent's office. A field audit is conducted by the IRS on the business premises of the taxpayer or in the office of the tax practitioner representing the taxpayer.
References in periodicals archive ?
It took three years to develop SAS 70. Initially when SAS 70 is compared with its predecessor (SAS 44) little seems to have changed.
The ePlus SAS 70 report was conducted by a CPA firm specialising in SAS 70 services and it concluded that the design and operating effectiveness of controls supporting its eProcurement and Content solutions provided "reasonable assurance" that the specified control objectives were achieved during the period from 1 January to 30 September 2008.A ePlus System's eProcurement solution is Procure+ and it provides catalogue, bidding, ordering, inventory and invoice matching management for the entire purchasing process.
Even though the principal goal of the SAS 70 was the reliability of the financial statements, SAS 70-like control reports have become increasingly widespread in the United States and around the world to meet the requirements of various regulatory agencies and governmental entities.
An SAS 70 is needed because an erroneous report by the investment firm would result in an erroneous financial statement by the credit union.
SAS 70 provides a standard by which service organizations can demonstrate the effectiveness of their internal controls without having every client company perform an audit on their operations.
On June 15, the American Institute of Certified Public Accountants' reporting standard known as SSAE 16 effectively replaced the SAS 70 standard for U.S.
Amazon has security certifications such as ISO 27001 and SAS 70, he said, adding that large-scale cloud providers can make expensive, long-term investments in security that others cannot.
Local colocation provider Waveform Technology, has announced the successful completion of a SAS 70 (Statement on Auditing Standards number 70) audit of Waveform's Troy Michigan Data Center.
Through the partnership, GRC would allow community credit unions to combine assets and leverage its industry-leading technology platform, REOConnex, which is an SAS 70 compliant workflow application.
"The Black-Line application meets our specifications." Coley adds that she was further reassured by BlackLine's SAS 70 Type II security audit.
70 is that a service organization becomes "SAS 70 certified" after undergoing a type 1 or type 2 engagement.