Audit

Definition

Audit is a systematic examination or evaluation of an organization's accounts, financial records, or processes to ensure accuracy, compliance, and efficiency. It can also refer to similar evaluations in non-financial areas, such as a safety audit or performance audit.

Parts of Speech

• Noun
• Verb

Pronunciation

American English

• IPA Pronunciation: /ˈɔːdɪt/
• Respelling: AW-dit

British English

• IPA Pronunciation: /ˈɔːdɪt/
• Respelling: AW-dit

The pronunciation of "audit" is consistent in both American and British English.

Etymology

The term "audit" originates from the Latin word "audire," which means "to hear." It came into use in the English language in the 15th century, initially referring to the hearing of accounts or financial statements.

Derivatives

• Auditor (noun)
• Auditable (adjective)
• Auditing (noun)
• Reaudit (verb)
• Auditability (noun)

Synonyms

• Examination
• Inspection
• Review

Antonyms

• None

Usage

The word "audit" is commonly used in financial and corporate contexts to refer to an official examination of financial records or systems. For example, "The company undergoes an annual audit to ensure financial transparency," or "They will audit the safety procedures at the factory."

Related Terms

• Financial Statement: A formal record of the financial activities and position of a business or entity.
• Compliance: The act of adhering to rules, regulations, or standards, often a focus of audits.
• Internal Control: A process implemented by an organization to ensure the integrity of financial and accounting information.

Detailed Definitions

Noun

• A formal examination of an organization’s accounts or financial situation: Refers to the systematic evaluation of financial records to ensure accuracy and compliance.
  • Example: "An external audit is required by law for large corporations."
• An evaluation of a system, process, or performance: Extends to non-financial areas, assessing efficiency or adherence to standards.
  • Example: "The safety audit revealed several areas for improvement."

Verb

• To examine or evaluate for accuracy, compliance, or efficiency: Refers to the act of conducting an audit.
  • Example: "The firm was hired to audit the company’s financial statements."