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

Here are several examples of the types of verification that an auditor can employ as part of an audit:

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.
Send a confirmation letter to a client's customer to verify that a receivable balance is correct.
Compare the fixed asset register to the actual fixed assets, to ensure that all recorded assets are actually on the premises.
Recalculate the interest expense on a client’s loan.