A private audit refers to an independent examination of a company's financial statements and records conducted by a certified public accountant (CPA) or a professional auditing firm. This type of audit is typically requested by the company's management or stakeholders and is not required by regulatory bodies.

The main difference between a private audit and other types of audits, such as statutory or regulatory audits, lies in the purpose and scope of the audit:

1. Purpose: A private audit is performed to provide assurance to the company's management, stakeholders, or potential investors regarding the accuracy and reliability of the financial statements. It aims to identify any material misstatements or fraudulent activities and offers recommendations for improving financial controls and processes.

2. Scope: The scope of a private audit is determined by the company's management or stakeholders. It can be tailored to focus on specific areas of concern or provide a comprehensive examination of the financial statements and records. The scope may also include non-financial aspects such as operational efficiency, compliance with internal policies, or risk assessment.

Additionally, private audits are usually conducted on a periodic basis, such as annually or quarterly, to ensure ongoing financial transparency and integrity. They are considered a proactive measure to enhance internal controls and maintain credibility with stakeholders.

It is important to note that private audits are distinct from external audits mandated by regulatory bodies, such as government agencies or stock exchanges. These regulatory audits are required by law and are primarily focused on ensuring compliance with specific accounting standards, laws, or regulations.

Overall, private audits provide an independent evaluation of a company's financial health and contribute to building trust and confidence among stakeholders.