An audit is a careful examination of financial records and processes to ensure accuracy and compliance with laws and regulations. It helps organizations verify that their financial statements are truthful and that they are following proper accounting practices. Audits can be conducted internally by employees or externally by independent firms. During an audit, auditors review documents, interview staff, and assess the effectiveness of internal controls. This process not only identifies errors or fraud but also provides recommendations for improvement. Ultimately, an audit builds trust with stakeholders, such as investors and regulators, by ensuring that the organization is operating transparently and responsibly.