Definition · audit
Financial audit
Financial audit is an independent examination of financial statements to opine on whether they fairly present results. For financial audit, the important details are the accounting period, source evidence, reviewer, materiality threshold, and control purpose that make the treatment auditable during close, reporting, and later review.
Also known as external audit, statutory audit, financial statement audit
Why it matters
Understanding financial audit matters because close, reconciliation, and audit work depend on consistent timing, source evidence, review thresholds, and ownership. A loose definition creates avoidable rework. Pluvo's bitemporal audit trail lets a reviewer take any number to its source records in two clicks, which is the evidence an audit needs.
In practice
Close example
Teams use financial audit during close, review, or audit support when a balance or transaction needs evidence. The controller should be able to trace the number to source records, timing, reviewer, and control threshold.
Pluvo example
Pluvo's bitemporal audit trail lets a reviewer take any number to its source records in two clicks, which is the evidence an audit needs.
In practice, teams should define financial audit with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.
Understanding financial audit matters because close, reconciliation, and audit work depend on consistent timing, source evidence, review thresholds, and ownership. A loose definition creates avoidable rework. Pluvo's bitemporal audit trail lets a reviewer take any number to its source records in two clicks, which is the evidence an audit needs.
A strong workflow for financial audit separates the definition from the action: first agree what the term means, then decide how it is measured, when it changes, and who is accountable for the next step.
Pluvo's bitemporal audit trail lets a reviewer take any number to its source records in two clicks, which is the evidence an audit needs.
FAQ
What is a financial audit?
Financial audit is an independent examination of financial statements to opine on whether they fairly present results. For financial audit, the important details are the accounting period, source evidence, reviewer, materiality threshold, and control purpose that make the treatment auditable during close, reporting, and later review.
What is the difference between an internal and external audit?
The boundary for financial audit differs from related terms by scope, source data, time period, and decision use. In this glossary, it covers an independent examination of financial statements to opine on whether they fairly present results, so teams should compare those boundaries before using it in reporting or planning.