Cynthia Bassett Hartwig added that auditing is a process that examines an organization’s financial statements to ensure they are accurate and reflect the company’s current financial status. It also checks the organization’s internal controls and policies to ensure they work correctly.

The purpose of an audit is to examine a company’s financial statements, such as its balance sheet and income statement. These statements show the company’s net worth, income, and expenses for a given period. They are usually submitted to the government for regulatory purposes but can be made available to investors and other interested parties.

An audit examines a business’s financial records by someone independent. It includes checking accounting and financial records, interviewing employees and management, and testing internal controls.

Typically, an audit is done to verify the accuracy of company financial records and report any discrepancies or errors. An outside audit firm, an internal auditor within the company, or a combination of both may conduct it.

A company may decide to have an audit conducted for many reasons. It can be a way to improve the company’s financial health, detect fraud, and confirm that company processes comply with industry standards.

An audit can also uncover illegal activity, such as money laundering or theft of trade secrets. This is a severe problem for companies, as it could cost them a lot of money and damage their reputation.

Some individuals have the right to have their taxes audited by the IRS if they suspect their information is inaccurate or incomplete. This can save them from paying tax penalties or fines if they have been misreported on their taxes.

The IRS can audit your income, such as wages from a job or interest on a bank account, by sending an agent to your home. They will look at your receipts and see if they match the information reported on the government’s tax return.

In the business world, audits are required by law to verify a company’s financial reports and provide assurance that they are free from material error. They also help to make shareholders and other stakeholders trust the company’s statements.

Auditors are qualified professionals with extensive experience in analyzing business operations and the quality of financial statements. They will be able to identify any issues with your financial information that may require correction or clarification and will also be able to offer recommendations on how you can better manage your company’s finances.

A business can benefit from regular audits of its financial statements as they will increase your company's credibility in the eyes of potential buyers and stakeholders. This can lead to more investors and lenders willing to finance your company’s future growth plans, as they are more likely to believe in the integrity of your company’s financial reports.

Some colleges allow students to audit a class rather than enroll them in it. This can be helpful for those who don’t have the time or resources to enroll in a full-time course but would still like to better understand the subject matter.