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An audit is a systematic review and assessment of information or documents. In the context of finance, it's the process where an independent, third-party auditor examines a company's financial statements to determine whether they are accurate and in compliance with accounting standards.
Financial audits are usually carried out by certified public accountants (CPAs) who are independent of the organization being audited. The auditor's role is to provide an objective opinion on whether the financial statements present a true and fair view of the company's financial position and performance. Audits can help improve a company's credibility and reliability, as they provide assurance to stakeholders that the company is operating in a truthful and transparent manner.
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