What criteria can you use to evaluate the effectiveness of final accounts auditing?

3 Audit standards

The third criterion to consider is the audit standards, which are the rules and guidelines that govern the conduct and quality of the audit. The audit standards should be based on the generally accepted auditing principles (GAAP) or other relevant frameworks, such as the International Standards on Auditing (ISA) or the Generally Accepted Government Auditing Standards (GAGAS). The audit standards should be followed by the auditor throughout the audit process, from planning to reporting, and they should ensure that the audit is performed with competence, independence, integrity, and objectivity. For example, if the audit standards are not adhered to, the audit report may be unreliable, misleading, or biased.

4 Audit evidence

The fourth criterion to consider is the audit evidence, which is the information and data that support the auditor's findings and conclusions. The audit evidence should be obtained from various sources, such as documents, records, interviews, observations, tests, and analyses, and it should be relevant, reliable, sufficient, and appropriate to the audit objectives and scope. The audit evidence should be documented and evaluated by the auditor, and it should be consistent and coherent with the financial statements and the accounting policies. For example, if the audit evidence is insufficient or unreliable, the auditor may not be able to express an opinion or may issue a qualified or adverse opinion.

5 Audit report

The fifth criterion to consider is the audit report, which is the final product and communication of the audit. The audit report should be clear, concise, complete, and accurate, and it should include the auditor's opinion, the basis for the opinion, the responsibilities of the auditor and the management, the audit scope and standards, and any significant findings or issues. The audit report should be issued in a timely manner, and it should be addressed and distributed to the relevant stakeholders, such as the board of directors, the shareholders, the regulators, or the public. For example, if the audit report is vague, incomplete, or inaccurate, it may not provide a fair and true view of the financial position and performance of the company.

6 Audit feedback

The sixth criterion to consider is the audit feedback, which is the response and reaction of the stakeholders to the audit report. The audit feedback should be solicited and analyzed by the auditor and the management, and it should include the comments, suggestions, questions, complaints, or compliments that reflect the satisfaction and expectations of the stakeholders. The audit feedback should be used to improve the quality and effectiveness of the audit process, and to address any gaps or weaknesses that may exist in the financial reporting and internal control systems. For example, if the audit feedback is positive, it may indicate that the audit was successful and beneficial, but if it is negative, it may indicate that the audit was flawed or inadequate.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?