Independent Audit Definition

An audit is a process of looking over a financial record and discovering any irregularities. An independent audit is nothing more than an audit performed by a disinterested, independent entity. Most companies use an independent auditor to review their books. Why’s it so important to have an independent review? Well, remember the last time you went shopping and bought that fabulous personal gizmo and told your spouse "it didn’t cost that much" right before your spouse saw the receipt and completely wigged out? Clearly, your opinion of "that much" varies with the opinion of your cheapskate spouse. The only way to settle it is to get an independent opinion before heading back to the store to make a return. In the same way, a company wants an independent audit to ensure the auditor is unbiased.