- audit objective
- 1. The purpose of an audit. Audits are normally performed to support or refute specific objectives. The external audit of an organization, for example, typically has the following main objectives: "To obtain evidence that the organization’s financial statements conform with *Generally Accepted Accounting Principles, and offer a *fair representation of the entity’s financial position, the results of its operations, and changes in cash flows." If sufficient *audit evidence is gathered to confirm these objectives, the external auditor can issue an *unqualified opinion. (Secondary objectives of an external audit may include the identification of *material *fraud, or serious weaknesses in *internal controls.) The objectives of internal auditing tend to be more varied than those of external auditing: This reflects the wide remit of internal auditing, through *financial and Operational audits to Compliance and Consulting reviews. 2. The purpose of a specific *audit test. It is generally considered best practice to state an objective (or objectives) for each individual audit test, and to conclude on the objectives after sufficient *audit evidence has been gathered to perform the test. For example, an audit *work paper may start as follows: "To obtain evidence that bank balances are accurately stated and correctly classified in the *general ledger." It may finish as follows: "objectives achieved." The formal stating of objectives for each audit test encourages the focus of auditing work in contributing to the overall objective of the audit. If the objectives of a specific test are not met, then alternative tests may be required.
Auditor's dictionary. 2014.