Accounting & Actuary Science: Audit

The Sarbanes-Oxley Act of 2002 directs the Board to establish auditing and related professional practice standards for all registered public accounting firms to follow in the preparation of financial reports for public companies and other issuers, and broker-dealers.

Auditing is the onsite verification activity, such as an inspection or an examination, of a process or a quality system, to ensure compliance to requirements. An audit can apply to an entire organization or might be specific to a function, process, or production step.