In accounting, an audit is a detailed review of your business’s financial statements.
Audit Extended Definition
During an audit, the information provided in the financial reports is evaluated and analyzed. Auditors look for trends to help your business grow and errors, inconsistencies, and omissions that may indicate criminal activity. Audits can be conducted by in-house employees or by a third party.
If the Internal Revenue Service (IRS) requests an audit, the agency will look at the accuracy of your records, as well as the proof required to support the business expenses you claimed.
What Is an Audit? | Patriot Software
Last Updated By
Andrew Freiman | Feb 24, 2023