government audits

A government audit is an official review of a business or individual’s financial records and practices to ensure compliance with laws and regulations. It involves examining financial statements, tax filings, and internal controls to verify accuracy and adherence to tax codes. The purpose is to prevent fraud, ensure proper tax payments, and promote transparency. Audits can be random or targeted based on suspected inconsistencies. While they mainly focus on taxation, they can also assess adherence to other regulatory requirements. Successful audits help maintain trust in the financial system and ensure fair contribution to public resources.