An examination of the financial records of a person, business, or organization, typically done to correct careless or improper bookkeeping or to verify that proper records are being kept. Businesses and nonprofits often undergo an annual audit by an independent accounting firm. The IRS (Internal Revenue Service) also conducts audits, mainly to assess taxes owed.
Law Dictionary – Alternative Legal Definition
As a verb; to make an official Investigation and examination of accounts and vouchers. before an auditor.