6 Essential Features of an Audit (Explained with a Chart)

The audit is structured into activities that follow a logical sequence. The audit will focus on the management and delivery of the electronic device, which supposes fluxes of electronic devices and procedures of treatment specific associated.

As the chart shows, an audit has six essential features or characteristics.

Audit features or characteristics are that; it is a systematic process, involves 3rd parties (like company shareholders), the audit task focuses on a specific subject matter, evidence collected for the auditing task, evaluating the evidence based on established criteria, and gives a professional opinion on the financial positions of the company.

The essential features of auditing are explained below;

Systematic Process

Auditing is a systematic and scientific process that follows a sequence of activities, which are logical, structured, and organized.

Three-party Relationship

The audit process involves three parties: shareholders, managers, and auditors.

Subject Matter

Auditors give assurance on a specific subject matter. However, the subject matter may differ considerably, such as – data, systems or processes, and behavior.

Evidence

The auditing process requires collecting the evidence, that is, financial and non-financial data, and examining thereof.

Established Criteria

The evidence must be evaluated regarding established criteria, which include International Accounting Standards, International Financial Reporting Standards, Generally Accepted Accounting Principles, industry practices, etc.

Opinion

The auditor has to express an honest and professional opinion as to the reasonable assurance of the entity’s financial statements.

Conclusion on Audit Features

The most important feature of any audit is that; it is a systematic process of expressing a professional opinion financial position of a company based on gathering and evaluating the evidence.

Audit features influence the objectives of the audit to refer to the security of the information and systems, the protection of the personal data, and access to some databases with a sensitive informational character.

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