audit


1au·dit

noun \ˈ-dət\

: a complete and careful examination of the financial records of a business or person

: a careful check or review of something

Full Definition of AUDIT

1
a :  a formal examination of an organization's or individual's accounts or financial situation
b :  the final report of an audit
2
:  a methodical examination and review

Examples of AUDIT

  1. The audit showed that the company had mislead investors.
  2. The Internal Revenue Service selected us for an audit.
  3. You will need all your records if you are selected for audit by the IRS.

Origin of AUDIT

Middle English, from Latin auditus act of hearing, from audire
First Known Use: 15th century

Other Business Terms

amortize, caveat emptor, clearinghouse, divest, due diligence, emolument, green-collar, marque, overhead, perquisite

Rhymes with AUDIT

2audit

transitive verb

: to check the financial records of (a business or person) : to perform an audit on (a business or person)

: to attend a course at a college or university without having to do any of the course work and without receiving credit

Full Definition of AUDIT

1
:  to perform an audit of or for <audit the books> <audit the company>
2
:  to attend (a course) without working for or expecting to receive formal credit
au·dit·abil·i·ty \ˌ-də-tə-ˈbi-lə-tē\ noun
au·dit·able \-ˌ-di-tə-bəl\ adjective
au·dit·ee \ˌ-də-ˈtē\ noun

Examples of AUDIT

  1. They audit the company books every year.
  2. The Internal Revenue Service audited him twice in 10 years.
  3. I audited an English literature class last semester.

First Known Use of AUDIT

15th century

Other Business Terms

amortize, caveat emptor, clearinghouse, divest, due diligence, emolument, green-collar, marque, overhead, perquisite

audit

noun    (Concise Encyclopedia)

Examination of the records and reports of an enterprise by accounting specialists other than those responsible for their preparation. Public auditing by independent accountants is common in large firms. The auditor performs tests to determine whether the firm's statements were prepared in accordance with acceptable accounting principles and that they fairly present its financial position and operating results. Personal tax audits are carried out to determine whether people have accurately reported their financial circumstances when filing their taxes. Failing such an audit may result in a fine, or, in cases of extensive and deliberate deception, criminal prosecution. See also Internal Revenue Service.

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