An audit is an extremely important process that is conducted in an organization. For the proper functioning of the organization and to prevent any fraudulent activity the audit takes place in the whole organization, or in any particular department. But if you want to make the audit process a success and achieve your audit goals and objectives, you need to determine the audit scope.
10+ Audit Scope Templates in PDF | DOC
1. Objective and Scope of Audit
2. Common Audit Scope
3. Internal Audit Scope
4. Auditors Audit Scope
5. Audit Scope of Work
7. Audit Scope Schedule
8. Audit Scope and Results
9. Audit Agency Scope of Work
10. Scope and Practise of Audit
11. Audit Scope of Applicant
What Do You Understand By Audit Scope?
An audit scope can be defined as the amount of time and the documents that are involved in an auditing process. It is the measurement of the depth of the audit process. Audits are performed in an organization for different purposes. It can be for regular checkups, or in case some issues or risks have arisen. Whatever be the reason the establishment of the scope and defining them prior to the action is imperative.
If the audit is performed as a regular checkup then there can be only one scope for the audit and that is checking the regular internal processing as done previously for the same time period.
If the audit is performed to identify the fraudulent activity the audit scope is deeper. This may include digging deep into the documents and records that wear prepared years or even decades ago. Formulation of the group of auditors which can be either the company employees or hired auditors who will be able to spend time looking into the matter.
Audit Scope vs Audit Criteria
Audit scope includes the time period of the audit, documents that are involved, physical location, organizational unit, and all the activities and the processes that will be conducted. It is the idea that deals with the depth of the audit process and how deep the auditor will dig in to get the relevant information. It is the extent and the boundary of the audit.
Whereas audit criteria can be termed as the set of policies, requirements, and procedures that are required for a successful audit. It can also be defined as the principle standards abiding in which the audit will be conducted.
What are the Types of Audit?
The types of audit can be classified into seven categories:
This the evaluation or examination of the entity or the department of a company to check whether it is in compliance with the internal and regulatory standards.
This the type of audit that examines the cost that is incurred in any construction project. This may include the contract granted to the contractor, price that is paid, etc.
This is the analysis of the financial statement of an organization. This is conducted by a third party which is independent of the organization which is under edit.
Information Systems Audit
This type of audit system includes the examination of the control over software development, data processing and access to the computer systems. The intention of this type of audit is to identify any issue in the IT system.
This type of audit is conducted when there occurs any suspicious or fraudulent activity. This is to find out the inappropriate action that has taken place.
This the type of audit that concerns the process, procedures, goal and the result of all the operational processes that are occurring in the organization or in the department. The result that is intended to be found, is the evaluation of the operational activities.
This involves the tax that is submitted by an entity or an organization. The audit is conducted to check if the information related to taxation is correct and the payments that are made are valid. The target is to find out if the entity or the organization is paying a higher or lower amount of tax that it is subjected to.
How Will You Define the Audit Aim?
An audit aim can be defined as the result that an auditor wants to achieve by conducting the audit process. It is the overall idea of the audit process. Setting up an audit aim is necessary so as to have the ideas of where the process and the procedure is going. It is the ultimate goal that the auditor wants to fulfill.