Audit on inn destroyed by flood (10)

I believe the answer is:

inundation

'flood' is the definition.
(thesaurus)

'audit on inn destroyed' is the wordplay.
'destroyed' is an anagram indicator.
'audit'+'on'+'inn'='auditoninn'
'auditoninn' anagrammed gives 'INUNDATION'.

'by' is the link.

(Another definition for inundation that I've seen is " Flood".)

I've seen this clue in The Telegraph.

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