What to know Another word for Auditing?
Read on to find out more.
Auditing means verification of books of accounts.
So, the auditor verifies if the financials are free from errors.
The following words are used as synonyms for the word audit.
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The above terms will fall into a broad category of Auditing synonyms. In other words, these above words comprises of a piece of the term “audit”. So, the word audit is comprehensive term.
Insights About Auditing:
The Word Audit is derived from the Latin word “Audire,” which means to hear. Previously, Auditors used to listen to the accounts read out for them. So, that’s the background for using the word Audire.
Does “Another word for Auditing” listed above can be used interchangeably?
Nope, it is not appropriate to use the above words as Auditing synonyms. This is because the word Auditing purview is quite large. Therefore, Auditing word is quite different from the above ones.
Does Verification and Examination (in auditing) are the same?
Auditor’s has greater responsibility of ensuring the books of accounts reflecting a true and fair view of financial statements. The extent of audit procedures are also gone up. Even though these two words seem to be of the same meaning but have different context. Therefore, understand the context before using these words interchangeably.
Verification is how the auditor uses this for physical confirmation of Inventory/Assets (Existence). Examination means to look into the Purchase invoice for confirming the rights of the entity towards the Assets (Rights)
Does Investigate and Analyze (in auditing) mean the same?
The auditor performs analytics to understand the relationships among various account balances. For instance, analyzing current year accounts payable with the previous year to understand the reasons for the fluctuations.
The investigation comes into play once the fluctuations exceed the threshold. Auditor will investigate to understand the reasons for such variance.
We will try to understand this with an example. The below table comprises of Accounts payable balance for the current year and prior year with assumption of audit materiality equal to $10 Million.
Such analytics will reveal the fluctuations and their reasons. Thus auditor will have more persuasive audit evidence. In Scenario 2, there is an increase in accounts payable compared to the prior year (Analysis), which could be due to increased expenses due to new projects or the company unable to honor its cash commitments (Results of Investigation).
We have included all the Auditing synonyms above. But the meaning of Auditing is a comprehensive term. Therefore, the audit scope is wide enough to encompass all the words mentioned earlier.