6 Essential Features of an Audit

No doubt auditing is essential for an organization or individual account. These are some most important characteristics/features of an audit. The essential features of an audit can be described as follows:

Features of an Audit

1. Systematic process: Auditing is a systematic and scientific process that follows a sequence of activities, which are logical, structured, and organized.

2. Three-party relationships: The audit process involves three parties, that is, shareholders, managers, and auditors.

3. Subject matter: Auditors give assurance on a specific subject matter. However, the subject matter may differ considerably, such as – data, systems, or processes and behavior.

4. Evidence: The auditing process, requires collecting the audit evidence, that is, financial and non-financial data, and examining thereof.

5. Established criteria: The evidence must be evaluated in terms of established criteria, which include International Accounting   Standards, International Financial Reporting Standards, Generally Accepted Accounting Principles, industry practices, etc.

6. Opinion: The auditor has to express an opinion as to the reasonable assurance on the financial statements of the entity.

Features of an Audit
Features of an Audit

You May Like Also:

3 thoughts on “6 Essential Features of an Audit”

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to Top
Scroll to Top