What is an Audit and Who Performs It

Companies use internal and external auditors to track any number of factors in the operation of a company. The auditor serves as a neutral party to report on those factors.

Audits can be internal or external. Internal audits can be a means of the board of the company to check that the organization is performing its tasks as expected. For that purpose, the board can use an internal auditing organization within the company or even hire a third-party. An external audit can be the result of checking for compliance to governmental regulations, accounting practices, or attempt by a customer to see that your company is servicing them as agreed.