What does an audit inspect within an organization?

An audit is a comprehensive examination of an organization's financial statements, accounting records, and related processes to ensure accuracy and compliance with regulatory standards and financial reporting frameworks. The primary focus is to assess whether the financial statements present a true and fair view of the organization's financial position. This includes not only verifying the accuracy of the numbers reported but also checking adherence to accounting principles, laws, and regulations.

When an audit is conducted, auditors will review various aspects of the organization's accounts, including transactions, internal controls, and financial processes. This thorough inspection helps to identify any discrepancies or areas of non-compliance, ensuring that stakeholders can trust the financial information being presented.

In contrast, the other options focus on specific aspects that do not encapsulate the broader and more critical role of an audit. For example, while the cash flow statement is important, an audit encompasses all financial statements and records. Marketing strategies and employee performance records, while relevant to the business, fall outside the typical scope of an audit, which is primarily concerned with financial integrity and compliance.