Financial Audit
Definition
Financial Audit: A financial audit is an independent examination of a company's financial statements by a certified public accountant. Auditors verify that statements fairly represent financial position per accounting standards. Audits provide credibility for investors, lenders, and acquirers—often required at Series B+ or for larger acquisitions.
Example Usage
“We completed our first audit before Series B. It took 8 weeks and cost $50K but gave investors confidence in our numbers.”
Common Misconceptions
Related Terms
Due Diligence
Due diligence is the investigation process investors conduct before finalizing an investment. It typically covers financials, legal matters, technolog...
Financial Model
A financial model is a spreadsheet-based representation of a company's financial performance and projections. Models typically include revenue, costs,...
Explore More Resources
Browse Tools
Discover 100+ vetted tools for every stage of your startup journey
Explore all toolsBuild Your Stack
Take our personalized quiz to get tool recommendations for your startup
Start the checklistRecommended Reading
Curated books to help you learn, grow, and succeed as a founder
View book recommendationsListen & Learn
Top podcasts covering startups, product, growth, and entrepreneurship
Discover podcastsHelp us improve this definition
See something that could be clearer or more accurate? Let us know.