Audit FAQs:

Q: Is an audit a systematic and independent examination of books?

A: Yes, and accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements as well as non-financial disclosures present a true and fair view of the concern.

Q: Is an audit an examination of the operations of the client's business?

A: Yes.

Q: Are audits essential to verify the existence of objective evidence showing conformance to required processes?

A: Yes, and to assess how successfully processes have been implemented, and to judge the effectiveness of achieving any defined target levels.

Q: Are audits performed to verify conformance to standards through review of objective evidence?

A: Yes.

Q: Is an audit derived from a Latin word "audire" which means "to hear"?

A: Yes, During the medieval times when manual book-keeping was prevalent, auditors in Britain used to hear the accounts read out for them and checked that the organisation's personnel were not negligent or fraudulent.

Q: Were audits mainly associated with gaining information about financial systems and the financial records of a company or a business?

A: Yes.

Q: Is an audit needed?

A: Yes, and sensitivities are high ,and need to be able prove conclusions via sustainable evidence.

Q: Is an audit to examine Three E's?

A: Yes, and namely: Effectiveness – doing the right things with least wastage of resources.

Q: Is an audit called an integrated audit?

A: Yes, where auditors, in addition to an opinion on the financial statements, must also express an opinion on the effectiveness of a company's internal control over financial reporting, in accordance with PCAOB Auditing Standard No.

Q: Are audits also necessary to provide evidence concerning reduction and elimination of problem areas?

A: Yes, and they are a hands-on management tool for achieving continual improvement in an organization.

Q: Are audits performed to ascertain the validity and reliability of information?

A: Yes, as well as to provide an assessment of a system's internal control.

Q: Is an audit to understand the current state of a project in order to increase project success?

A: Yes.

Q: Is an audit to verify that a project is compliant with regulations and standards?

A: Yes.

Q: Is an audit "an examination of cost accounting records and verification of facts to ascertain that the cost of the product has been arrived at"?

A: Yes, and in accordance with principles of cost accounting.