Verification refers to

Verification in auditing means checking the accuracy and existence of assets and liabilities. It includes confirming ownership valuation and possession. For example auditors may verify land ownership by checking title deeds or verify stock by physical inspection. Verification builds confidence in financial statements and ensures that they are free from errors or fraud. It is a vital part of auditing because without proper verification financial reports cannot be trusted. Investors regulators and management depend on verified data to make correct decisions.