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Glossary of Terms

Audit

Auditing can have many applications within modern businesses. Most commonly, the term audit is used to describe the detailed exploration of internal finance documents and processes to ensure accuracy and compliance. An audit is usually completed by an independent organization, such as the Internal Revenue Service (IRS). However, finance is not the only department impacted by audits. An audit can involve any subject matter or process related to your business.

The purpose of this type of audit is to hold businesses accountable to shareholders and the government for tax and legal purposes. While being audited by the IRS, your business should be able to produce any financial record for review of validity and reliability. This process can be difficult, cumbersome and time-consuming for businesses that store important documents in file cabinets or warehouses.

In addition, audit can be used to describe an in-depth review of any process, department, employee or operation. For example, your IT department may complete an in-depth technology audit to determine gaps and opportunities for digital growth. The HR department may complete an employee performance audit to evaluate engagement throughout the organization.