Preaudit

An accounting practice used prior to the official examination of the accuracy of an organization's financial statements. This preliminary phase of an audit is used to establish the scope of the audit and any special areas of concern. It is also used to gather background information and to request needed documents, records and information. A preaudit may be conducted in the form of a written questionnaire that the auditor gives to the auditee.

A preaudit is also a phase in which an IRS agent examines a tax return that has been selected for audit. Prior to beginning the audit, the agent must check the statute of limitations for the return, review the return, determine the scope of the audit, establish contact with the taxpayer, make an audit appointment with the taxpayer, explain to the taxpayer his rights and get him to sign form 2848, Power of Attorney and Declaration of Representative.


Investment dictionary. . 2012.

Look at other dictionaries:

  • preaudit — /pree aw dit/, n. Accounting. an examination of vouchers, contracts, etc., in order to substantiate a transaction or a series of transactions before they are paid for and recorded. Also, pre audit. Cf. postaudit. [1935 40; PRE + AUDIT] * * * …   Universalium

  • preaudit — pre·audit …   English syllables

  • preaudit — pre•au′dit n …   From formal English to slang

  • preaudit — noun Etymology: pre + audit : an audit made prior to the final settlement of a transaction contrasted with postaudit * * * /pree aw dit/, n. Accounting. an examination of vouchers, contracts, etc., in order to substantiate a transaction or a… …   Useful english dictionary

  • postaudit — (ˈ) ̷ ̷+ noun Etymology: post + audit : an audit made subsequent to the final settlement of a transaction contrasted with preaudit * * * /pohst aw dit/, n. Accounting. an audit of accounting records, conducted at some interval of time after a… …   Useful english dictionary

  • postaudit — /pohst aw dit/, n. Accounting. an audit of accounting records, conducted at some interval of time after a transaction or a series of transactions has already occurred. Also, post audit. Cf. preaudit. [POST + AUDIT] * * * …   Universalium

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