An annual audit is a systematic examination of an organization's financial statements and records, typically conducted once a year. The purpose of this audit is to ensure accuracy, compliance with accounting standards, and to provide assurance to stakeholders, such as investors and regulators, that the financial information is reliable. During an annual audit, independent auditors review the organization's financial documents, assess internal controls, and verify the accuracy of reported figures. The outcome is usually a report that highlights any discrepancies or areas for improvement, helping organizations maintain transparency and accountability in their financial practices.