Auditing
Auditing
Auditing (/ˈɔːdɪtɪŋ/; from Latin audire, "to hear") is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users.
Etymology
The term "audit" is derived from the 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.
Types of Auditing
There are several types of auditing, including:
- Financial audit: A financial audit, also known as a financial statement audit, is the verification of the financial statements of a legal entity, with a view to express an audit opinion.
- Operational audit: An operational audit is a detailed analysis of the goals, planning processes, procedures, and results of the operations of a business.
- Compliance audit: A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines.
- Information systems audit: An information systems audit, technology audit or IT audit is an examination of the management controls within an Information technology (IT) infrastructure.
Related Terms
- Audit trail: An audit trail (also called audit log) is a security-relevant chronological record, set of records, and/or destination and source of records that provide documentary evidence of the sequence of activities that have affected at any time a specific operation, procedure, or event.
- Audit risk: Audit risk is the risk that an auditor issues an incorrect opinion on the financial statements.
- Audit plan: An audit plan is a detailed plan of action for an audit examination.
- Audit report: An audit report is the formal opinion of audit findings.
External links
- Medical encyclopedia article on Auditing
- Wikipedia's article - Auditing
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