What is an audit?

[Gaurav]

I received a notice and now I’m worried about what is an audit. Does an audit always mean there’s a serious problem with your tax return?

 

[Jonas_Kahnwald]

An audit is a detailed and thorough review and inspection of records, operations, or financial statements with the main objectives of confirming their correctness, ensuring that they follow the given regulations or standards, and detecting any mistakes, risks, or even potential areas of getting better.

 

[Aurora]

An audit refers to an independent audit and examination of financial records, the processes, or systems to establish that they are accurate, compliant, and reliable. It assists in detecting errors, fraud or inefficiencies and is used to ensure compliance with rules or standards.