4. Auditing

Word

Example

audit

The audit of the company's financial statements will begin next week

auditor

The auditor examined the company's records to ensure accuracy

audit report

The audit report revealed several discrepancies in the financial statements

internal audit

The internal audit team identified areas for improvement in the financial controls

external audit

An external audit is conducted by an independent firm to ensure unbiased results

audit trail

The audit trail allows the auditors to track every financial transaction

audit opinion

The audit opinion stated that the financial statements were free from material misstatements

financial statements

The auditors will review the company's financial statements to ensure compliance

material misstatement

The audit discovered a material misstatement in the revenue figures

risk assessment

The auditors conducted a risk assessment before beginning the audit process

audit evidence

The audit evidence was sufficient to support the conclusions in the audit report

compliance audit

The company underwent a compliance audit to ensure it met all legal requirements

audit plan

The audit plan outlines the procedures the auditors will follow during the audit process

audit procedure

The auditors followed specific audit procedures to verify the company's financial health

audit fee

The audit fee is determined based on the complexity of the company's financial operations

independent auditor

The company hired an independent auditor to provide an objective assessment of its financial health

audit scope

The audit scope was expanded to include a review of internal controls

audit findings

The audit findings showed that the company had over-reported its income

auditing standards

Auditors must follow auditing standards set by professional bodies

audit committee

The audit committee is responsible for overseeing the audit process and ensuring its integrity

audit risk

There is always a risk in auditing, particularly in detecting fraud or errors

audit checklist

The audit checklist helps the auditors ensure they cover all necessary areas

fraud audit

A fraud audit was conducted to investigate potential fraudulent activities in the company

auditor's report

The auditor's report was submitted to the board of directors for review

audit findings report

The audit findings report includes all the errors discovered during the review

financial audit

A financial audit is conducted to verify the accuracy of the company's financial statements

audit workpapers

The audit workpapers provide detailed documentation supporting the auditor's findings

audit test

The audit test revealed discrepancies in the payroll data

audit sampling

The auditors used sampling techniques to check the accuracy of the financial records

audit trail system

The company implemented an audit trail system to track changes in financial documents

audit scope definition

The audit scope definition helps clarify the areas the auditors will focus on

substantive testing

Substantive testing is performed to verify the completeness and accuracy of financial transactions

audit engagement

The audit engagement involves reviewing the company's financial statements and internal controls

audit documentation

Proper audit documentation is essential for supporting the audit opinion

audit conclusion

The audit conclusion was that the company's financial statements were fairly presented

audit risk assessment

An audit risk assessment was performed before the audit procedures were initiated

materiality

Materiality refers to the significance of an item that could affect the decisions of users of financial statements

audit planning

Audit planning involves identifying the risks and determining the audit procedures to address them

auditor's independence

The auditor's independence is crucial to ensure the objectivity of the audit

audit engagement letter

The audit engagement letter outlines the scope and terms of the audit agreement

sampling method

The auditors used a statistical sampling method to select transactions for testing

audit evidence collection

The auditors are collecting evidence to support their conclusions

audit work program

The audit work program lists all the steps the auditors will take during the audit process

audit verification

Audit verification ensures that all figures presented in financial statements are accurate

audit approach

The audit approach was risk-based to focus on high-risk areas

audit opinion types

There are different types of audit opinions, including unqualified and qualified opinions

audit report format

The audit report format must comply with professional standards and regulations

audit adjustments

The auditors made several adjustments to the financial statements based on their findings

auditing process

The auditing process involves several phases, including planning, testing, and reporting

audit procedure guidelines

The auditor follows the audit procedure guidelines to ensure all necessary steps are completed