Financial audit

Okay kiddo, have you ever helped your mom or dad clean your room? You know how you have to look at everything in your room to make sure everything is in the right place and there's no mess? Well, that's kind of like what a financial audit is.

A financial audit is when someone called an auditor looks at all the money things a company or organization has done. This means they look at how much money they spent, how much money they made, and where they spent the money. The auditor wants to make sure everything is in the right place, just like you want your toys to be in the right place in your room.

The auditor will also look at important papers and receipts to make sure everything is correct. Just like you keep important pieces of paper like school work, a company or organization keeps important papers about their money.

Then the auditor will make a report, just like you or your parents might make a report about how clean your room is. In this report, they'll tell the company or organization if their money is in the right place and if everything looks okay. Sometimes the auditor might give suggestions on what the company or organization can do to make things better.

So, in summary, a financial audit is like when someone comes to check all the money things a company or organization has done to make sure everything is in the right place, just like you check your room to make sure everything is clean and tidy.