Eli5: What exactly is auditing in accounting?

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I keep hearing this term from my accountant friend and have absolutely no idea what it means. I tried googling it but that just left me even more confused than I was.

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Anonymous 0 Comments

Audit is an assurance activity that the company is operating as per regulations, policies, requirements, legislation.
External audit focuses on assurance of the financial statements, while internal audit focuses on internal controls, risk management, compliance.

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