- audit objective
- 1. The purpose of an audit. Audits are normally performed to support or refute specific objectives. The external audit of an organization, for example, typically has the following main objectives: "To obtain evidence that the organization’s financial statements conform with *Generally Accepted Accounting Principles, and offer a *fair representation of the entity’s financial position, the results of its operations, and changes in cash flows." If sufficient *audit evidence is gathered to confirm these objectives, the external auditor can issue an *unqualified opinion. (Secondary objectives of an external audit may include the identification of *material *fraud, or serious weaknesses in *internal controls.) The objectives of internal auditing tend to be more varied than those of external auditing: This reflects the wide remit of internal auditing, through *financial and Operational audits to Compliance and Consulting reviews. 2. The purpose of a specific *audit test. It is generally considered best practice to state an objective (or objectives) for each individual audit test, and to conclude on the objectives after sufficient *audit evidence has been gathered to perform the test. For example, an audit *work paper may start as follows: "To obtain evidence that bank balances are accurately stated and correctly classified in the *general ledger." It may finish as follows: "objectives achieved." The formal stating of objectives for each audit test encourages the focus of auditing work in contributing to the overall objective of the audit. If the objectives of a specific test are not met, then alternative tests may be required.
Auditor's dictionary. 2014.
Look at other dictionaries:
audit evidence — Information that supports or refutes an *audit objective. Lee (1993, 172) distinguishes between evidence (the overall basis for audit reporting) and evidential material (the various means by which auditors construct their evidence to support… … Auditor's dictionary
audit opinion — An auditor’s conclusion on the extent to which *audit evidence refutes or confirms an *audit objective. *Independence is considered to be central to the credibility of audit opinions, especially in the context of an external audit: An auditor’s… … Auditor's dictionary
objective — 1. noun See *audit objective. 2. adjective Impartial, without bias. Objectivity is fundamental to the credibility of auditing, owing to the importance of auditor judgment. The Reasonableness of an objective judgment is often assessed on the basis … Auditor's dictionary
Audit Interne — L audit interne est une activité de conseil réalisée par certains employés de l entreprise qui certifie la régularité de la gestion de l entreprise relativement au suivi de ses procédures. Sommaire 1 Enjeux et histoire de l audit interne 1.1… … Wikipédia en Français
Audit — For other uses, see Audit (disambiguation). Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management … Wikipedia
Audit — L audit est une activité de contrôle et de conseil qui consiste en une expertise par un agent compétent et impartial et un jugement sur l organisation, la procédure, ou une opération quelconque de l entité. L audit est surtout un outil d… … Wikipédia en Français
Audit interne — L audit interne est une activité de conseil réalisée par certains employés de l entreprise qui certifie la régularité de la gestion de l entreprise relativement au suivi de ses procédures. L audit interne est exercé dans différents environnements … Wikipédia en Français
Information technology audit process — Information technology audit process:Generally Accepted Auditing Standards (GAAS)In 1947, the American Institute of Certified Public Accountants (AICPA) adopted GAAS to establish standards for audits. The standards cover the following three… … Wikipedia
compliance audit — An *audit of Compliance with external *regulations or *internal control procedures. A compliance audit is not to be confused with Compliance testing the former has as its *audit objective the verification of compliance with external or internal… … Auditor's dictionary
Internal audit — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia