Audit Abbreviations

What is Audit?

Audit is a systematic examination of the activities carried out in a particular company or sector, which aims to verify if they are in accordance with the planned and/or previously established provisions, if they have been implemented effectively and if they are adequate.

Audit is an analytical and expert examination that monitors the performance of accounting operations expressed in a balance sheet. The expression accounting audit is often used, which serves to describe the valuation of a company in the accounting landscape.

Professionals who participate in the audit of financial statements are certified and must follow strict professional standards. The main auditing firms are Deloitte, PricewaterhouseCoopers, KPMG, Ernst & Young, among others.

External and internal audit

Audits can be classified into: external audit and internal audit. The external audit is distributed in several management areas, such as systems auditing, human resources auditing, quality auditing, financial statements auditing, legal auditing, accounting auditing, etc.

The objective of the internal audit is to evaluate the management process, with regard to aspects such as corporate governance, risk management and procedures for adherence to standards, in order to point out possible deviations and vulnerability to which the organization is subject.

While the external auditor is a professional who is hired from outside and has a limited time to solve the company’s problems, the internal auditor is an employee of the company itself, which has more time and knowledge in relation to the company in question.

Environmental audit

The environmental audit consists of the investigation of the norms or parameters of a company, in relation to its interaction with the environment.

This type of audit is used to verify that a company is complying with the regulations laid down by laws in the field of environmental protection. In some cases, a company can forget about the environmental and ecological aspects, in order to obtain more profits.

Hospital audit

In the field of health, there is the hospital audit that can be applied in the various areas of a hospital, such as auditing in nursing, for example.

In these cases, the audit aims to ascertain whether the services provided are of good quality and comply with established standards.

The audit is a matter of learning and training, so that everyone involved in patient care can have the best possible performance.

List of Acronyms Related to Audit