audit
Definition 1
An examination and verification of a company's financial and accounting records and supporting documents by a professional, such as a Certified Public Accountant.
Definition 2
An audit is an IRS examination of an individual or corporation's tax return, to verify its accuracy. There are three types of audits: correspondence audits (the IRS mails a request for additional information), office audits (an interview is conducted at a local IRS office), and field audits (an interview is conducted at a taxpayer's place of business, for a corporate tax return). Since there is always the chance of an audit, experts recommend keeping good records to support all the information in a return. The reason detailed and accurate bookkeeping is so important is that the burden of proof is on the filer, not the IRS.
An examination and verification of a company's financial and accounting records and supporting documents by a professional, such as a Certified Public Accountant.
Definition 2
An audit is an IRS examination of an individual or corporation's tax return, to verify its accuracy. There are three types of audits: correspondence audits (the IRS mails a request for additional information), office audits (an interview is conducted at a local IRS office), and field audits (an interview is conducted at a taxpayer's place of business, for a corporate tax return). Since there is always the chance of an audit, experts recommend keeping good records to support all the information in a return. The reason detailed and accurate bookkeeping is so important is that the burden of proof is on the filer, not the IRS.
This content can be found on the following page:
audit is ...
... part of the Accounting and Taxes subjects.
... part of the Accounting and Taxes subjects.
Related Terms
auditor -
except-for opinion, insurance examiner, tax audit, Public Company Accounting Oversight Board, certified financial statement, foreign currency translation, audit committee, complete audit
audit appears in these other terms
unqualified audit, audit trail, auditor's report, independent auditor
audit appears in the definitions of these other terms on BusinessDictionary.com
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