An audit is a systematic and independent examination of books, accounts, statutory records, documents, and vouchers of an organization to ascertain how far the financial statements as well as non-financial disclosures present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Auditors, who are qualified professionals, conduct these examinations and provide their opinion on whether the financial statements are free of material misstatement, whether due to fraud or error. Through this process, they provide assurance to various stakeholders, including investors, creditors, management, and regulators, that the financial representations made by the organization are reliable and accurate. An audit can be conducted internally by employees of the organization or externally by an outside firm. The process involves the assessment of the systems and processes for recording and reporting financial transactions, and it may also include the examination of business operations and compliance with relevant laws and regulations. The findings of an audit can lead to recommendations for business improvements, as well as provide a basis for regulatory reporting, investor confidence, and credibility in financial statements.
