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Accounting & Tax vocabulary · Auditing & Internal Control

Audit

Meaning in accounting & tax, with examples

/ˈɔːdɪt/nounCore term

In accounting & tax, audit means: An independent examination of a company's financial statements and records to check that they are accurate and follow the applicable rules.

In Turkish: denetim, bağımsız denetim

How it is used

External auditors carry out the annual audit, while internal audit reviews processes during the year. It is also a verb: the accounts were audited by a Big Four firm. An audit ends with a report and an opinion.

Example sentences

  1. The auditors arrive next week, so please have all the bank statements ready.

  2. The year-end audit took longer than expected because of the new ERP system.

Common collocations

  • carry out an audit
  • annual audit
  • external audit
  • internal audit
  • audit report
  • auditorA qualified professional who examines a company's accounts and records and gives an independent view on whether they are reliable.
  • audit opinionThe auditor's formal conclusion, given in the audit report, on whether the financial statements are fairly presented in all material respects.
  • internal controlThe policies and procedures a company uses to protect its assets, prevent errors and fraud, and make sure its financial reporting is reliable.
  • materialityThe idea that an error or omission matters if it is large or important enough to change the decisions of people who read the financial statements.
  • tax auditAn examination by the tax authority of a taxpayer's books, returns and documents to check that the correct amount of tax has been declared and paid.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Auditing & Internal Control

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This page explains English vocabulary for learners. It is not financial advice.