Verbull Word of the day
Finance glossary

Audit

Accounting · beginner
Definition

An independent examination of a company financial statements.

An audit is a review by an independent accounting firm to verify that financial statements are accurate and comply with standards like GAAP. Public companies require annual audits to assure investors and regulators. A clean opinion boosts credibility; a qualified one raises flags.

In a sentence

An independent audit gave the company's books a clean bill of health.

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