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 internal auditing, 'audit checklists' are used as a systematic guide to ensure all relevant processes and controls are reviewed. An internal auditor might say, 'Our audit checklists help us cover all compliance and operational areas efficiently during the audit process.'

Practice Scenarios

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.

Quality-Assurance

Scenario:

We are aiming for the highest standards in our production line. It's time we started doing self-audits before inviting external auditors.

Response:

Good idea, I'll draft a comprehensive audit checklist for internal use as we aim for better output quality.