Question

Audits and Compliance / Enterprise Security Strategy Plan

Instructions: In NO LESS than 400 words, answer the following question.

Compare and contrast audits and assessments.

•Pick at least 3 things that are the same and 3 things that are different.

•Compare the goals, the timing, and the roles that are involved.

Answer 1

Compare and contrast audits and assessments:

The terms Audit and Assessment both are very important for analysis, examination and decision making purpose. It helps us to understand the true financial picture of the business as well as the organization. There are some similarities and differences are there in between audit and assessment. So we need to understand and recognize the same.

The most important similarities between these two is that both have an objective and both are helping out to making various economic decision. The other similarities is that the both have a mission and the planning is made according with this mission. The both are performed by the professional and both are fall under committees.

Audit means examination of the financial statement to state whether the financial statement shows true or fair view or not. In other hand assessment means analysis of the findings, so that the same can be resolved and turned into positive manner for the growth of an organization.

The definition and the purpose states that there are some differences between these two terms. The major differences are:

• Audit has its own standards but assessment does not follow any standard. Its depending upon the situation and the findings.
• Audit is perform by the external auditor who are independent but assessment is done by the expert. Most of the time they are the internal resources of the organization. So sometime they may be bias towards management or their decision can be influenced by the management.
• Both the things are added some value of the business as well as the organization. But the procedure and the time duration is different. Generally the audit is to be conducted within a particular time bound but the time relaxation or time constrain clause is not generally applicable to the assessment. The time requirement is depending upon the situation and the findings.

The goals of the audit procedure to examine the financial statement and for the assessment the goal is to access the result and outcome of the findings. The forecasting and the various strategic decision is depending upon generally on the proper and effective assessment. In other hand audit is mandatory to establish the faith in the investors as well as the users of the financial statement’s mind, so that they can rely on the organization. Both the things are important for the organization and the role of both the things are interrelated. So the both should be performed simultaneously in efficient and effective manner.

References:

Davenport, D. L., Holsapple, C. W., & Conigliaro, J. (2009). Assessing surgical quality using administrative and clinical data sets: a direct comparison of the University HealthSystem Consortium Clinical Database and the National Surgical Quality Improvement Program data set. American Journal of Medical Quality, 24(5), 395-402.

McKay, J., Bowie, P., & Lough, M. (2006). Variations in the ability of general medical practitioners to apply two methods of clinical audit: a five‐year study of assessment by peer review. Journal of evaluation in clinical practice, 12(6), 622-629.