The term 'CHECKED THE BOOKS' can be summarized by the word 'AUDITED, ' which is a seven-letter word. Auditing is an important process in accounting and finance, where an independent third party reviews the financial records of a company or organization to ensure accuracy and compliance with regulations. This process involves examining the books, records, documents, and other evidence to verify the accuracy of the financial statements. By checking the books, the auditor can provide assurance that the financial statements are free from material misstatement.