financial auditing
Checking company finances
Financial auditing is the systematic examination of an organization's financial records, statements, and accounting practices to verify their accuracy and compliance with regulations.
Independent auditors review transactions, assess internal controls, and determine whether financial reports fairly represent the organization's position: The company underwent financial auditing before going public.
The process yields an auditor's opinion—unqualified, qualified, or adverse—that signals trustworthiness to investors and regulators.
- auditorsFinancial statement reviewers
- Sarbanes-Oxley ActCorporate financial reporting law
- GAAPFinancial reporting conventions
- reconciliationRestoration of friendly relations
- forensic accountingExamining records for fraud
sampling · financial statements · materiality · whistleblower · red flags · regulators · accountants · Big Four · number crunching · CFOs · board of directors · risk assessment · paper trail · invoices · receipts · internal controls · scrutiny · quarterly
- taxationtax, income tax, sales tax, tax return, tax refund
- Islamic financesalam, zakat, sharia compliance, Islamic banking, halal standards
financial auditingguesswork
Conclusions drawn without proof
financial auditingfinancial fraud
Illegal monetary deception
cooking the books · embezzlement · money laundering · creative accounting · accounting fraud
financial auditingself-reporting
Stating information about oneself
closed books · self-certification · financial autonomy · rubber-stamping · deregulation