A routine inspection performed by either internal employees or an external #0excludeGlossary auditor. The goal of an audit is to determine if the cannabis company is meeting standards and regulatory requirements.
An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon." Auditing also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Auditors consider the propositions before them, obtain evidence, roll forward prior year working papers, and evaluate the propositions in their auditing report.
Audits provide third-party assurance to various stakeholders that the subject matter is free from material misstatement. The term is most frequently applied to audits of the financial information relating to a legal person. Other commonly audited areas include: secretarial and compliance, internal controls, quality management, project management, water management, and energy conservation. As a result of an audit, stakeholders may evaluate and improve the effectiveness of risk management, control, and governance over the subject matter.
In recent years auditing has expanded to encompass many areas of public and corporate life. Professor Michael Power refers to this extension of auditing practices as the "Audit Society".
English
Etymology
Borrowed from Latin audītus, from audiō (“I hear”).
Pronunciation
- (Received Pronunciation) IPA(key): /ˈɔː.dɪt/
- (General American) IPA(key): /ˈɔ.dɪt/
- (cot–caught merger) IPA(key): /ˈɑ.dɪt/
- Rhymes: -ɔːdɪt
- Hyphenation: au‧dit
Noun
audit (plural audits)
- A judicial examination.
- An examination in general.
- An independent review and examination of records and activities to assess
