An audit examines information, data, and activities to verify their reliability and validity. An audit must be performed by an eligible (qualified) and independent person – an auditor. In a narrower sense, an audit is the verification of financial statements; in a broader sense, it is a detailed and critical examination of aspects of a company’s or organization’s economic performance as regards the compliance of its activities and operations with its goals, budgets, rules, standards, and norms. The output of an audit is an audit report. Types of audit include the following: statutory audit (required by law), security audit (required by law), financial audit, process audit, forensic audit, strategic audit.

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