An audit is an objective examination and evaluation of the financial statements of an organization to make sure that the records are a fair and accurate representation of the transactions they claim to represent. It can be done internally by employees of the organization, or externally by an outside
Audits preformed by outside parties on private companies can be extremely helpful in removing any bias when it comes to the state of a company's financials. Audits look for what can be called a "material error" in statements on any specific object. They help provide stakeholders with a sense of accuracy when regarding the state of the subject being audited and can help enable them to make better, more informed decisions regarding the subject being audited. When audits are performed by third parties, the opinion on whatever is being audited (a business’ books, an organization as a whole or a system) can be candid and honest without it effecting daily work
