An audit is a systematic examination of financial records, processes, or systems to ensure accuracy and compliance with established standards. Audits can be conducted internally by an organization's own staff or externally by independent firms. The primary goal is to verify that financial statements are truthful and that the organization is following relevant laws and regulations. Audits can also assess operational efficiency and effectiveness, identifying areas for improvement. They are essential for maintaining transparency and trust, especially for stakeholders like investors and regulatory bodies. Common types of audits include financial audits, compliance audits, and operational audits.