An audit is the evaluation of an organization or a system process. Audits are conducted to determine the validity and dependability of financial information, or processes.
Audits of financial statements strive to provide a reasonable assurance that such statements are free of material errors. Such an audit is an independent assessment of the fairness of the representation made by management of its financial statements.
Upon completion of the audit process auditors will issue an audit report and an opinion about the fairness of the statements audited.
Other types of audits include those performed by internal auditors, who are employees of the company they audit. Internal auditors seek to detect fraud within the company, to improve its system process and to correct recording errors.