Auditing Task

An Auditing Task is a systematic examination of how well statements present a true and fair view.

• Context:
  • It can be instantiated as an Auditing Instance.
  • It can involve: Audit Planning, Audit Preliminary Assessment, Auditing Fieldwork, Audit Analysis and Audit Reporting.
  • …
• Example(s):
  • a Data Auditing Task, that results in data audits (by data auditors).
  • a Financial Auditing Task, that results in financial audits (by financial auditors).
  • a Government Auditing Task, that results in government audits (by government auditors).
  • an Academic Audit,
  • an Energy Audit,
  • an Information Technology Audit,
  • an Operational Audit,
  • a Performance Audit.
  • a Project Audit,
  • a Quality Audit.
  • …
• Counter-Example(s):
  • a Bookkeeping Task.
• See: Financial Auditing, Security Auditing, Legal Person, Stakeholder (Corporate), Materiality (Auditing).

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References

2023

• chat
  • An audit is an independent, systematic examination and evaluation of an organization's financial statements, records, processes, or systems to ensure their accuracy, reliability, and compliance with applicable laws, regulations, and accounting standards. Audits can also be conducted for non-financial purposes, such as assessing an organization's operational efficiency, effectiveness, or adherence to specific policies and procedures.
  • The process that creates audits typically involves the following steps:
    • Planning: In this stage, the auditor gains an understanding of the organization, its operations, and the scope of the audit. The auditor also identifies key risk areas and develops an audit plan tailored to the specific needs of the organization.
    • Preliminary assessment: The auditor reviews the organization's internal controls and procedures to determine their effectiveness in mitigating risks and preventing errors or fraud. This helps the auditor identify areas that require further examination and testing.
    • Fieldwork: During this phase, the auditor collects evidence by performing various audit procedures, such as examining financial records, conducting interviews, observing processes, and testing controls. This helps the auditor gather sufficient and appropriate evidence to support their conclusions about the organization's financial statements or other areas under review.
    • Analysis: The auditor analyzes the evidence collected to identify any discrepancies, errors, or potential fraud. They also assess whether the organization's financial statements have been prepared in accordance with relevant accounting standards and whether its processes and controls are effective.
    • Reporting: After completing the analysis, the auditor prepares a written report that presents their findings, conclusions, and recommendations. This report is typically shared with the organization's management, board of directors, and other relevant stakeholders. In the case of a financial audit, the auditor's report is usually included in the organization's annual report.
    • Follow-up: Depending on the type of audit and the findings, the auditor may conduct follow-up activities to ensure that the organization has implemented the recommended changes and improvements.
  • Audits can be conducted by external auditors, who are independent of the organization being audited, or by internal auditors, who are employees of the organization responsible for assessing its internal processes and controls. Additionally, regulatory bodies or government agencies may conduct audits to ensure compliance with specific laws and regulations.

2016

• https://en.wiktionary.org/wiki/audit#Verb
  1. To examine and adjust (e.g. an account).

     to audit the accounts of a treasure, or of parties who have a suit depending in court

  2. To conduct an independent review and examination of system records and activities in order to test the adequacy and effectiveness of data security and data integrity procedures, to ensure compliance with established policy and operational procedures, and to recommend any necessary changes
  3. To attend an academic class on a not-for-academic-credit basis.

2016

• (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Audit Retrieved:2016-1-8.
  • Auditing refers to a systematic and independent examination of books, accounts, documents and vouchers of an organization to ascertain how far the financial statements present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Auditing has become such an ubiquitous phenomenon in the corporate and the public sector that academics started identifying an "Audit Society". The auditor perceives and recognizes the propositions before him/her for examination, obtains evidence, evaluates the same and formulates an opinion on the basis of his judgement which is communicated through his audit report. Any subject matter may be audited. Audits provide third party assurance to various stakeholders that the subject matter is free from material misstatement. The term is most frequently applied to audits of the financial information relating to a legal person. Other areas which are commonly audited include: internal controls, quality management, project management, water management, and energy conservation. As a result of an audit, stakeholders may effectively evaluate and improve the effectiveness of risk management, control, and the governance process over the subject matter. The word audit is derived from a Latin word "audire" which means "to hear". During the medieval times when manual book-keeping was prevalent, auditors in Britain used to hear the accounts read out for them and checked that the organization's personnel were not negligent or fraudulent.

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