—auditable, adj./aw"dit/, n.1. an official examination and verification of accounts and records, esp. of financial accounts.2. a report or statement reflecting an audit; a final statement of account.3. the inspection or examination of a building or other facility to evaluate or improve its appropriateness, safety, efficiency, or the like: An energy audit can suggest ways to reduce home fuel bills.4. Archaic. a judicial hearing.5. Obs. an audience.v.t.6. to make an audit of; examine (accounts, records, etc.) for purposes of verification: The accountants audited the company's books at the end of the fiscal year.8. to make an audit of (a building or other facility) to evaluate or improve its safety, efficiency, or the like.v.i.9. to examine and verify an account or accounts by reference to vouchers.[1400-50; late ME audite < L auditus the sense or act of hearing, equiv. to audi(re) to hear + -tus suffix of v. action]
* * *Examination of the records and reports of an enterprise by accounting specialists other than those responsible for their preparation.Public auditing by independent accountants is common in large firms. The auditor performs tests to determine whether the firm's statements were prepared in accordance with acceptable accounting principles and that they fairly present its financial position and operating results. Personal tax audits are carried out to determine whether people have accurately reported their financial circumstances when filing their taxes. Failing such an audit may result in a fine, or, in cases of extensive and deliberate deception, criminal prosecution. See also Internal Revenue Service.
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