Audit:

The audit is defined as a systematic examination of books of accounts of an individual or an organization. Auditing is done by the professional CPA; we call them auditors.

Auditor:

The auditor is the person hired by the owner for a systematic examination of books of accounts of the company. The auditor uses its professional knowledge and gathers evidence. It should be a question minded, plan, and being alert to the condition of the misstatement due to fraud and error. 

Misstatement:

Misstatement can occur whether intentionally and unintentionally. Management understated expenses and overstated revenue to increase (overstate) net profit. Understated expense overstated net profit for the period. The net profit is added to the owners’ equity, it increases the equity of the owner (shareholders).