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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Auditing means the same in accounting as anywhere else.
Someone goes to check that there are records where they’re meant to be, whether those records match each other and reality, and if they do not, Investigate why.
Audits can be internal (done by the company on its own) or external (bringing a third party in), although accounting audits are done externally because you’re trying to convince others (clients, shareholders, potential investors) that there’s no funny business goin on, and someone going “yeah, I checked it myself and everything is great, you don’t need to see it” doesn’t convince anybody.
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