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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
An empirical study of industrial requirements engineering process assessment and improvement.
A concept of the software life cycle process assessment model is shown in Fig.5.
This feature was included because there may be organizations that are not familiar enough with the process assessment models to start using a system based on them.
The resulting improvements from both a product and a process assessment will have long-term benefits for a company's ability to gain and sustain a competitive advantage in the marketplace.
The kit of international standards on Software Process Assessment will deliver the following benefits to industry and software users: software suppliers will submit to just one process assessment scheme (presently numerous schemes are used) software development organizations will have a tool to initiate and sustain a continuous process improvement with, and supports, the business needs of the organization programme managers will have a means to ensure that their software development is aligned with, and supports, the business needs of the organisation.purchasers of the software will be able to determine the capability of software suppliers and assess the risk involved in selecting one supplier over another.
Students also nearly met level 3 of the Student Learning Process Assessment, namely, "Revises the process or product in ways that serve the purpose of the process or product."
This article details problems with process description, process assessment, and process synchronization as observed in two large European companies in the automotive and production/utility plant engineering sectors.
The handbook's section on summative and formative uses of outcome analysis is particularly helpful in understanding the need for process assessment, even with the major focus on the outcome.
The evolution of this practice is currently referred to as "process assessment." In our earlier literature Gickling & Havertape, 1981) we referred to this type of practice as product assessment.
Bob took some time for an in-depth review of Chapter 3 to become familiar with the activities involved in a process assessment. The sequential activities were displayed in a flow chart (shown as Figure 2):
Process assessment involves measuring the levels of static electricity within your processes to help define the level of risk for damage to susceptible parts handled within those processes.

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