What is Verification in Auditing?

Verification is the use of various procedures to ensure the accuracy or truth of information. The concept is heavily used by auditors, who act as independent third parties who verify whether accounting transactions and source documents are correct.

Examples of Verification

As an example of verification, auditors may compare source documents to a balance recorded in a company's general ledger to verify that the balance is correct and recorded within the correct date range. Similarly, an auditor can send a confirmation letter to a client's customer to verify that a receivable balance is correct. Or, an auditor may compare the fixed asset register to the actual fixed assets, to ensure that all recorded assets are actually on the premises.