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Audit

AW-dit /ˈɔːdɪt/

nounverbC1GREGMAT

FormalBusiness

(noun) An official inspection of an individual's or organization's accounts, typically by an independent body. (verb) Conduct an official financial inspection of (a company or individual).

An 'audit' is a thorough, systematic examination, often with legal or regulatory implications. It's not just a quick check, but a deep dive into financial records to ensure accuracy and compliance.

The story behind the word. The word 'audit' comes from the Latin verb 'audire,' meaning 'to hear.' In medieval times, financial accounts were often checked by 'hearing' them read aloud. The auditor would literally 'hear' the accounts to verify them. This ancient practice evolved into the modern sense of a formal examination of financial records.

Word relationships

Inspection: A careful examination or scrutiny, often less formal or comprehensive than an audit.
Examination: A detailed inspection or study, can be used broadly for any close look.
Scrutiny: Critical observation or examination, often implying suspicion or close attention.

Neglect: The state of being uncared for; failure to pay proper attention to something.
Oversight: An unintentional error or omission; can also mean the action of overseeing something.

Commonly confused with

Review: A 'review' is generally less formal and less thorough than an 'audit,' which is a systematic, often legally mandated, examination.

Word family

auditor (noun): A person who conducts an audit.
auditable (adjective): Capable of being audited.

Collocations

tax audit
internal audit
external audit
conduct an audit
audit report
financial audit

Example sentences

"The company faced a rigorous tax audit after discrepancies were found in its financial statements." IRS procedures.
"Regular internal audits help ensure that financial processes are followed correctly and identify potential risks." Internal company controls.

Memory hook

An AUDIT makes sure all the numbers 'AUDIble' (heard) are correct and accounted for. AUDIT = AUDIble

When not to use

Do not use 'audit' for a casual review or check. It implies a formal, often external, and detailed examination of records.

Fun facts

The original meaning of 'auditor' was simply 'one who hears.' This is why university students sometimes 'audit' a class – they attend to 'hear' the lectures without receiving credit.