An audit is an independent examination of a company's financial records, internal controls, and statements — typically conducted by external CPAs to provide assurance to investors, lenders, and regulators. Audits result in an opinion: unqualified (clean), qualified (issues but not material), adverse (significant issues), or disclaimer (insufficient information). Public companies must have annual audits by PCAOB-registered firms. Private companies may have audits for bank covenants, investor requirements, or M&A due diligence. Reviews are less rigorous than audits; compilations even less. Audit fees vary widely — large public companies pay tens of millions; small businesses pay $10K-$100K.
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Accounts Payable
Accounts Payable (A/P) is money a company owes to suppliers for goods or services received but not yet…
Accounts Receivable
Accounts Receivable (A/R) is money owed to a company by customers for goods or services delivered on credit.…
Accrual Accounting
Accrual accounting recognizes revenues when earned (regardless of cash receipt) and expenses when incurred (regardless of cash payment)…
Accrued Expense
An accrued expense is a cost recognized in the income statement before cash is paid — recorded as…
Amortization
Amortization is the systematic allocation of intangible asset cost over its useful life — analogous to depreciation but…
Balance Sheet
The balance sheet is a financial statement showing a company's assets, liabilities, and equity at a specific point…
Audit
August 22, 2026 · Aditya Gupta
Accounting
Related terms
Accounts Payable
Accounts Payable (A/P) is money a company owes to suppliers for goods or services received but not yet…
Accounts Receivable
Accounts Receivable (A/R) is money owed to a company by customers for goods or services delivered on credit.…
Accrual Accounting
Accrual accounting recognizes revenues when earned (regardless of cash receipt) and expenses when incurred (regardless of cash payment)…
Accrued Expense
An accrued expense is a cost recognized in the income statement before cash is paid — recorded as…
Amortization
Amortization is the systematic allocation of intangible asset cost over its useful life — analogous to depreciation but…
Balance Sheet
The balance sheet is a financial statement showing a company's assets, liabilities, and equity at a specific point…
