Definition of Auditee
Authored by Paul Davies · Updated
Definition of Auditee
The word Auditee refers to a person, organisation, or entity that is being audited. In an audit process, the Auditee is the party whose financial records, operations, or compliance with certain regulations are being examined by an auditor. The Auditee is responsible for providing access to necessary documentation and information during the audit.Audits can take various forms, including financial audits, operational audits, compliance audits, and IT security audits. In this context, the auditee is the entity being reviewed or evaluated by an independent party (the auditor), who is tasked with assessing whether the auditee’s operations, records, systems, or compliance practices meet established standards or regulations.The auditee’s role in the audit process includes:- Providing access to information: The auditee must supply the auditor with accurate and comprehensive documentation, such as financial statements, internal reports, system logs, or policies and procedures, depending on the type of audit.
- Cooperating with auditors: Auditees are expected to work collaboratively with the auditing team, answering questions, facilitating interviews, and providing additional resources or clarification if needed.
- Addressing findings: After the audit, the auditee typically receives an audit report that may outline areas of improvement or non-compliance. The auditee is responsible for addressing these findings, implementing corrective actions, or disputing any inaccuracies.