audit

Systematic inspection of accounting records involving analyses, tests, and confirmations. The hearing and investigation had before an auditor. An audience; a hearing; an examination in general.

A formal or official examination and authentication of accounts, with witnesses, vouchers, etc. Green-Boots Const. Co. v. State Highway Commission, 165 Okl. 288, 25 P.2d 783.

See also auditor

- Generally Accepted Auditing Standards (GAAS)

See also

- audit committee

- office audit

- correspondence audit

- audit of return

- auditor

@ audit opinion

Report of certified public accountant after an examination of financial statements, expressing opinion on the fairness of presentation of such statements. The opinion may take one of the following forms:

- unqualified opinion;

- qualified opinion;

- adverse opinion;

- disclaimer opinion

@ audit trail

Chain of evidence connecting account balances or other summary results to original transactions and calculations. The flow of events between the original transaction and the account balances in the financial statements.

@ desk audit

Review of civil service positions to determine if duties and responsibilities of position fit job classification and pay grade.

@ field audit

An audit by the Internal Revenue Service conducted on the business premises of the taxpayer or in the office of the tax practitioner representing the taxpayer.

To be distinguished from a correspondence audit or an office audit (q.v.).

@ independent audit

One conducted by an outside person or firm not connected in any way with the company being audited.

See also audit committee

@ internal audit

Audit performed by personnel of company to assure that internal procedures, operations, and accounting practices are in proper order-in contrast to an audit by outside, independent auditors.

@

- office audit (See office).

@ tax audit

An examination of books, vouchers and records, or other transactions possessing tax consequences, of a taxpayer conducted by agents of the I.R.S.

See correspondence audit

- office (office audit)

- RAR

Also called audit of return

@ audit committee

A committee of the board of directors of a corporation usually consisting of outside directors who nominate the independent auditors and discuss their work with them. If the auditors believe certain matters should be brought to the attention of stockholders, the auditors first bring these matters to the attention of the audit committee

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