An audit is when an auditor examines or inspects several books of accounts.
Following that, a physical inspection of inventory is performed to ensure that all departments are using a defined method for documenting transactions.
It is carried out to determine the accuracy of the organization’s financial accounts.
An audit can be conducted both internally by workers or department heads and externally by a firm or an independent auditor.
An audit by an impartial auditor ensures that all books of accounts are kept in a fair way and that no misrepresentation or fraud is being perpetrated.