Auditee refers to an individual or entity that is subject to an audit or examination of its financial records and transactions. In an audit, an auditee typically refers to the organization or company being audited and is the party responsible for providing the necessary documentation and information to the auditors.
The auditee plays a crucial role in the audit process as they are accountable for ensuring that their financial statements and transactions are accurate, complete, and adhere to relevant accounting standards and regulations. It is the auditee's responsibility to cooperate with the auditors, facilitating access to the necessary data, records, and personnel.
During an audit, the auditee must provide the auditors with relevant financial statements, invoices, bank statements, and other supporting documents. They are expected to answer inquiries, clarify doubts, and assist the auditors in understanding the nature of the transactions.
The auditee has a vested interest in the audit process as the outcome of the audit can impact their reputation, credibility, and financial standing. Therefore, it is important for auditees to maintain proper internal controls, documentation, and records to ensure a smooth and efficient audit process.
Overall, the auditee serves as the subject of scrutiny during an audit, providing the necessary information, records, and cooperation for auditors to evaluate the accuracy and reliability of the auditee's financial statements and transactions.
