AUDIT RESOLUTION Meaning and
Definition
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Audit resolution refers to the process of resolving and addressing issues and findings identified during an audit. An audit is a systematic examination of an organization's financial records, transactions, processes, and controls to ensure that they are accurate, reliable, and in compliance with applicable laws, regulations, and standards. During the audit, the auditor may identify areas where errors, discrepancies, or irregularities exist, or where improvements can be made.
The audit resolution process begins after the completion of the audit report, which details the auditor's findings and recommendations. It involves the organization taking appropriate actions to rectify any identified deficiencies, errors, or non-compliance issues. This may include implementing internal control measures, changing procedures or processes, addressing personnel actions, or taking any other necessary corrective measures.
Moreover, audit resolution is also aimed at preventing similar issues from recurring in the future by establishing preventive measures and implementing systematic changes to enhance overall effectiveness and efficiency. It is important for organizations to promptly address and resolve audit findings to maintain their reputation, ensure compliance, improve financial performance, and strengthen accountability.
To successfully resolve audit issues, organizations typically establish an audit resolution team or committee responsible for prioritizing and addressing the findings. This team collaborates with relevant stakeholders, such as finance, legal, and operational departments, to develop actionable plans and implement necessary changes. Continuous monitoring and communication are crucial components of audit resolution to ensure the successful implementation of corrective actions and follow-up on progress.
Etymology of AUDIT RESOLUTION
The word "audit" originates from the Latin word "audire", which means "to listen" or "to hear". In the context of accounting and finance, an audit refers to the process of examining and verifying financial records to ensure accuracy and compliance.
The word "resolution" has its roots in the Latin word "resolutio", which means "a loosening" or "a release". It later evolved to mean "a solution" or "a decision".
Therefore, the term "audit resolution" refers to the conclusive decision or solution reached after an audit, where any discrepancies or issues identified during the audit process are addressed and resolved.
