[aw-dit] 
| 1. | an official examination and verification of accounts and records, esp. of financial accounts. |
| 2. | a report or statement reflecting an audit; a final statement of account. |
| 3. | the inspection or examination of a building or other facility to evaluate or improve its appropriateness, safety, efficiency, or the like: An energy audit can suggest ways to reduce home fuel bills. |
| 4. | Archaic. a judicial hearing. |
| 5. | Obsolete. an audience. |
| 6. | to make an audit of; examine (accounts, records, etc.) for purposes of verification: The accountants audited the company's books at the end of the fiscal year. |
| 7. | to attend (classes, lectures, etc.) as an auditor. |
| 8. | to make an audit of (a building or other facility) to evaluate or improve its safety, efficiency, or the like. |
| 9. | to examine and verify an account or accounts by reference to vouchers. |
| au·dit (ô'dĭt) n.
v. tr.
To examine financial accounts. [Middle English (influenced by auditor, auditor), from Latin audītus, a hearing, from past participle of audīre, to hear; see au- in Indo-European roots.] au'dit·a·ble adj. |
The examination by an outside party of the accounts of an individual or corporation.
Audit
1. An unbiased examination and evaluation of the financial statements of an organization. It can be done internally (by employees of the organization) or externally (by an outside firm).
2. An IRS examination of a taxpayer's return or other transactions. The IRS performs this examination to verify the correctness of these filings.
Investopedia Commentary
1. Auditors ensure the fiscal accuracy and responsibility of organizations.
2. The ultimate fear of every taxpayer.
Related Links
Advanced Financial Statement Analysis
Tax Tips For The Individual Investor
See also: Auditor's Report, GAAP, Independent Auditor, Internal Audit, Opinion Shopping
audit