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Financial Terms

Audit

Think of an audit like a deep dive into a company's financial closet by someone with a really keen eye, called an auditor. The auditor rummages through all the company's money matters – how much they made, spent, owe, or own – recorded in their books. It's like checking every nook and cranny to make sure every penny is accounted for and everything is as it should be.

The auditor is like a detective, searching for clues that something might be off. They're not just counting cash; they're making sure the company is playing by the rules. They look for mistakes, odd bits, or signs of sneaky business. This way, they help catch any issues before they turn into big problems.

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