audit process
Systematic account examination
The audit process is the systematic procedure for examining and verifying records, accounts, or practices.
In accounting, it involves reviewing financial statements for accuracy and compliance.
In business more broadly, it describes any structured evaluation: The company's audit process for new vendors takes about six weeks.
Quality audits, security audits, and tax audits each follow their own established processes.
- Sarbanes-Oxley ActCorporate financial reporting law
- flowchartsVisual representations of procedures
- due diligencePre-transaction reasonable care
- balance sheetAssets-liabilities-equity report
- checklistsItemized task records
questionnaires · review · sign off · interview techniques · risk assessment · red flags · statistical models · ledger · income tax · materiality · tax return · working papers · paper trail · tax refund · internal · internal controls · documentation · sampling
audit processwillful ignorance
Purposely remaining uninformed
turning a blind eye · negligence · lack of accountability · dereliction of duty · rubber-stamping
audit processblind trust
Complete unquestioning confidence
taking at face value · honor system · self-certification · benefit of the doubt
audit processcover-up
Hiding wrongdoing from public
concealment · financial fraud · embezzlement · cooking the books · money laundering