Auditing is the process of examining and verifying the accuracy of financial records and statements. Auditing is typically performed by an independent third party or an internal auditor, and involves examining records such as invoices, bank statements, and financial statements to ensure that the information provided is accurate and in compliance with laws, regulations, and accounting standards. Auditing also involves the verification of compliance with internal controls and procedures, as well as the identification and resolution of any discrepancies. Auditors may also review the effectiveness of internal controls, assess the accuracy of financial reports and statements, and assess the overall financial health of an organization.