audit-checklists

Vocabulary Word

Definition

An 'audit checklist' is a handy tool used by auditors. Just like a grocery list aids one to remember all items to buy, an audit checklist lists all aspects to review during an examination of a company's financial statements.

Examples in Different Contexts

In environmental compliance, 'audit checklists' are essential for ensuring that operations adhere to environmental laws and regulations. An environmental auditor might state, 'Our audit checklists include checks for waste management, emissions, and resource usage to ensure sustainability practices are followed.'

Practice Scenarios

Business

Scenario:

We need to ensure our financial systems are in line with legal and regulatory frameworks. Let's prepare for the upcoming audit.

Response:

You're right. Let's review our audit checklists to make sure we've covered all compliance areas.

Accounting

Scenario:

Our financial year ends soon. We have to start organising our books for the annual financial audit.

Response:

Sure, I'll bring out our audit checklist and we can start preparing for the financial audit from next week.