Auditability is defined as the ability of an auditor to get accurate results when they exam a company's financial reports. A successful audit depends on the auditor's skills and the company's well-kept records, transparency of its operational reporting, and if managers provide substantial paperwork to the auditor.

Why would a company perform an audit?

The main reasons for the audit are to provide reasonable assurance that the financial statements are free from material misstatements and errors and to ensure that all events that can adversely affect the company have been disclosed.

What does it mean when a company does an audit?

A financial audit is an objective examination and evaluation of the financial statements of an organization to make sure that the financial records are a fair and accurate representation of the transactions they claim to represent.