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What does the terms " Audit " means ? What is the difference between Internal Audits and External Audits.
1.
an official examination and verification of accounts and records, especially 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.
An examination and verification of a company's financial and accounting records and supporting documents by a professional, such as a Certified Public Accountant.
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)
The word "audit" is derived from the Latin word "audire", meaning to hear. In carrying out his examination and verification of records, the auditor had to listen to his auditees. Auditing is not just limited to accounting, financial, or business records, but extends to many other areas in life. Below are some definitions:
1. an official examination and verification of financial accounts and records. 2. a final report detailing an audit. 3. the inspection or examination of something, as a building, to determine its safety, efficiency, or the like.
v.t.
4. to make an audit of (accounts, records, etc.). 5. to attend (classes, lectures, etc.) as an auditor. 6. to make an audit of (a building or other facility) to evaluate safety, efficiency, etc.v.i.
7. to perform an audit.
Audit
An oppertunity given to auditor to express an opinion on the true and fair view of company's financial statements.
an official inspection/verification of an organization accounts. if done by the independent authority called external audit or if conduct by internal management called internal audit.
Audit means " to hear"
and auditing is an official or legal inspection of an organization's accounts.
