Show Summary Details

Quick Reference

The process of checking accounts. Auditors check whether the accounts of a company, private trader, or association are complete and consistent, whether they agree with other records of purchases, sales, and inventories, and whether they comply with legal requirements and professional standards. Companies are legally required to have their accounts externally audited, and many other bodies are required to do so by their own constitutions. Many companies and other organizations employ internal auditors, to check the accuracy and completeness of their internal bookkeeping. The audit provides a safeguard against both fraud and incompetence in accounting. See also efficiency audit.

Subjects: Economics.

Reference entries

See all related reference entries in Oxford Index »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content. subscribe or login to access all content.