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Letter A
tax

Audit

An examination of a taxpayer's return and financial records by the IRS to verify that income, deductions, and credits are reported accurately.

Encyclopedia entry: Audit

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audit

An audit (noun) is a formal examination and verification of an individual’s or organization’s records and accounts, finances, or compliance with a set of standards.

To audit (verb) is the act of conducting formal examination and verification.

[Last reviewed in June of 2021 by the Wex Definitions Team
]

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Encyclopedia content from Cornell LII Wex (CC-BY-NC-SA 2.5).

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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.