An audit is a systematic examination and verification of an organization’s financial statements, records, processes, and internal controls. It is conducted by independent auditors to provide an objective assessment of the accuracy and reliability of financial information. Audits help ensure that financial statements fairly represent the organization’s financial position, performance, and cash flows.

They also identify any irregularities or discrepancies that may require further investigation. Audits are not only valuable to shareholders and investors but also serve as a basis for regulatory compliance and lending decisions.