surprise audit
Unexpected financial review
A surprise audit is an unannounced examination of financial records, inventory, or operations.
The element of surprise prevents the audited party from hiding irregularities or fabricating compliance: The IRS conducted a surprise audit of the nonprofit.
Tax authorities, regulators, and internal compliance teams use surprise audits to catch fraud or verify that standard procedures are actually being followed.
- inspectionFormal assessment of condition
- unannouncedWithout prior notice
- complianceAdhering to requirements
- internal controlsOrganizational oversight procedures
- due diligencePre-transaction reasonable care
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- audits
- auditinginternal control, materiality, internal controls, assurance, fieldwork
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