An examination is similar to an audit, but the main difference is that an audit focuses on historical financial information while an examination focuses on non-historical financial information..
A financial audit is an objective examination and evaluation of the financial statements of an organization to make sure that the financial records are a fair and accurate representation of the transactions they claim to represent..
Definition: Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions.
It is done to ascertain the accuracy of financial statements provided by the organisation..
An audit will require financial tests, proof of assets, as well as other evidence so that the auditor may be satisfied that the accounts show a true and fair value.
An independent examination is a simpler process and does not involve scrutiny of internal financial controls and processes..
Auditors act within specific auditing standards, while forensic examiners look at all procedures..
Auditors are not required to execute tests specifically to detect fraud, rather their tests are designed to address risks of material misstatement..
An audit will require financial tests, proof of assets, as well as other evidence so that the auditor may be satisfied that the accounts show a true and fair value.
An independent examination is a simpler process and does not involve scrutiny of internal financial controls and processes..
An audit is an examination of results to verify their accuracy by someone other than the person responsible for producing them.
An assessment is a judgement made about the results.
Assessment goes further than an audit as it involves the determination of actions necessary to make the assessed entity compliant..
Simply stated, an examination is a set of procedures narrower in scope than an audit, but also with less cost than an audit..
Simply stated, an examination is a set of procedures narrower in scope than an audit, but also with less cost than an audit..
The emphasis in Audit is on the examination and verification of financial statements and accounting records.
The emphasis in Review is given to over-viewing of the accounting records..
An examination engagement results in an opinion, and a review engagement results in a conclusion.
The purpose of an agreed-upon procedures engagement is to provide users of information with the results of procedures performed by the practitioner on underlying subject matter or subject matter information..
An Audit is the evaluation of a person, organization, project, product or primarily for the purpose of determining its validity and authenticity, or to verify adherence to a set of pre-defined processes.
On the other hand, an evaluation is the determination of merit using a set of standards..
Auditing is used to determine conformity to access financial statements are accurate and to identify risks.
Inspection of these documents is conducted to determine compliance with regulatory and legal requirements.
Safety is another area where audits and inspections are conducted..
An examination is similar to an audit, but the main difference is that an audit focuses on historical financial information while an examination focuses on non-historical financial information
In addition, an audit is subject to PCAOB audit standards (public companies) or Statement on Auditing Standards (private companies)
Auditors also report by exception on whether you have kept proper accounting records, made all the right disclosures and given them all the information they required
It is a fairly subtle difference to an outsider, but an independent examination requires less work, and doesn’t have to be done by a regulated body so tends to be cheaper
