audit investment & finance definition

The process of verifying a company’s financial information. Auditors are certified public accountants who are independent of the corporation. An auditor examines a company’s accounting books and records in order to determine whether the company is following appropriate account procedures. An auditor issues an opinion in a report that says whether the financial statements “present fairly” the company’s financial position and its operational results in accordance with Generally Accepted Accounting Principles (GAAP). Corporate financial statements are audited once a year.