Audit

audit: (n) the examination of a company’s accounting documentation and the verification or other comments regarding correctness of the documentation; also the review of a company’s accounting by the tax authorities. “The CFO of a company is responsible for ensuring that an audit is conducted prior to the annual report.”

audit: (v) the act of conducting an audit. “The company was audited by the Tax Agency.”

auditor: (n) a public accountant with advanced training who is qualified to perform audits. “The requirements for becoming an auditor include both higher education as an accountant and extensive accounting experience.”

auditor’s report: (n) the section of the annual report containing the auditor’s opinion about the accuracy of the company’s financial statements. “The failure to include an auditor’s report renders the annual report incomplete.”

annual report: (n) with respect to a limited liability company, the audited document submitted to the regulatory authority and the company’s shareholders which includes the company’s balance sheet, income statement, cash flow statement, auditor’s report and description of company operations.