audited

Audited is the past participle of audit and functions as an adjective describing accounts, statements, systems, or processes that have undergone examination by an auditor. The purpose is to verify accuracy, reliability, and compliance with applicable standards or regulations, and to provide stakeholders with evidence-based assurance.

Audits may be carried out by internal auditors within an organization or by independent external auditors. In many jurisdictions, audits of financial statements are conducted in accordance with established auditing standards, such as generally accepted auditing standards (GAAS) or international standards on auditing (ISA). The outcome is an audit report that expresses an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with the relevant financial reporting framework.

Audited activities include financial statement audits, compliance audits to assess adherence to laws and policies, and operational or performance audits that evaluate efficiency, effectiveness, and control risk. Some audits focus on internal controls and risk management, producing recommendations to strengthen governance.

The auditing process typically involves planning and risk assessment, evidence gathering and testing, evaluation of findings, and the preparation of an audit report. The report may also include management letters noting significant deficiencies and suggested improvements.

Audited statements and processes are ordinarily used by investors, creditors, regulators, and management to inform decision-making. It is important to note that an audit provides reasonable assurance, not an absolute guarantee, and that limitations such as sampling and management's representations may affect findings.