An independent audit is an examination of an organization's financial statements and records conducted by an external party, known as an auditor. This process ensures that the financial information is accurate, reliable, and complies with relevant laws and regulations. Independent audits help build trust among stakeholders, such as investors and regulators, by providing an unbiased assessment of the organization's financial health. The primary goal of an independent audit is to identify any discrepancies or issues in the financial reporting. Auditors review various documents, including balance sheets, income statements, and cash flow statements, to verify that the information presented is truthful and complete. This process ultimately enhances transparency and accountability within the organization.