A more thorough explanation:

An environmental audit is a type of audit that a company voluntarily conducts to evaluate its environmental management programs and determine whether it complies with environmental regulations. It is a self-audit that helps companies identify areas where they can improve their environmental performance.

For example, a manufacturing company may conduct an environmental audit to assess its compliance with regulations on air and water pollution, hazardous waste disposal, and energy efficiency. The audit may involve reviewing the company's records, interviewing employees, and inspecting the facility to identify any environmental risks or opportunities for improvement.

Another example is a real estate transaction where a buyer may conduct an environmental audit to assess the potential environmental liabilities associated with the property. The audit may involve testing the soil and water for contamination, reviewing the property's history, and assessing compliance with environmental regulations.

Overall, an environmental audit helps companies and individuals identify potential environmental risks and opportunities for improvement, which can lead to better environmental performance and compliance with regulations.