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Auditee is: Definition, Duties, & Differences with Auditors



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Have you ever heard of the term auditee? Perhaps, it is still rare to hear this term in your ears. However, for certain companies, agencies, or organizations it may be familiar.

Because, the auditee is a company or agency that will be carried out the audit process. In other words, the auditee is the subject of the audit process who is obliged to provide information to auditor.

Simply put, an audit is a process or evaluation to ensure accuracy financial report company.

Therefore, the audit process is very important for every agency or company. This cannot be separated from its function, namely to see how the financial condition is during a certain period.

Moreover, financial statements are the most important part of business sustainability. Of course, they are required to conduct a financial statement audit process.

However, are they familiar with the terms auditee and auditor? Because, these two terms are very important in the implementation of the company audit process.

With that said, this article will discuss what auditees are, their duties, examples, and how they differ from auditors.

Let's take a look at the discussion below!

What is an Auditee?

auditee adalah orang yang diaudit oleh auditor
Illustration of the Auditee Party (

Auditee is a person or party whose company or institution will be carried out the audit process.

This means that the auditee is the party that will be the subject that will later be audited by an auditor. Therefore, the auditee must provide and provide detailed information to the auditor so that the audit process runs smoothly.

Usually, auditees are companies, organizations, government agencies, individuals, institutions, or other entities that require an audit process.

The purpose of the audit process itself is to see the truth of the company's information or financial statements. 

This truth will later be revealed by an auditor and provide an opinion whether the company's financial statements are in accordance with certain regulatory standards or not.

Therefore, the auditee is the most important part of the audit process to be carried out. Because, they are the ones who will provide information and financial reports to an auditor.

In addition to the financial statements, the auditee can also ask the auditor to perform audit process on internal issues and company operations.

Auditee Duties

Indirectly, an auditee, auditor, and audit cannot be separated and become one unit. This is because it ensures that the audit process will run smoothly.

Therefore, an auditee also has several tasks that need to be done. The auditee's duties are as follows:

1. Preparation

One of the important tasks that auditees must perform is preparation. This preparation refers to several aspects before the audit process.

Starting from the data and administrative needs needed for the audit process, ensuring financial reports are in accordance with regulations, and so on.

All these aspects must be prepared before being submitted to the auditor to enter the audit process. Make sure all the data is correct and valid so that nothing untoward happens.

2. Process understanding

Not only preparation, but as an auditee must also understand the ongoing audit process.

The goal is to prevent fraud committed by an auditor and ensure that the audit process runs smoothly and in accordance with certain procedures.

3. Transparency

Furthermore, an important task that the auditee must do is to provide transparent information to the auditor.

This condition is carried out so that the auditor can carry out the audit process effectively and efficiently based on the information or data provided by the auditee.

In addition, the auditee is also tasked with providing answers to all the questions the auditor asks.

Then, another duty of the auditee is to provide access to the auditor to conduct the audit, including providing the necessary facilities.

Auditee and Auditor Differences

Are you still confused about the difference between auditees and auditors? Perhaps, for the layman it is still quite difficult to distinguish between the two.

However, you don't need to worry anymore because we will give you a complete answer about the differences between the two.

The difference between auditee and auditor actually lies in the position during the audit process. If the auditee is the party or subject to be audited by an auditor.

Auditees give trust to auditors to carry out the audit process in their company. Usually, auditees are government agencies, companies, institutions, organizations, individuals, and so on.

Meanwhile, an auditor is someone or party who carries out the audit process. Auditors have the responsibility to see and evaluate how the auditee's financial statements are in accordance with the regulations or not.

This means that the auditor will work to see the suitability and reliability of the company's financial information and adjust it to the applicable accounting standards.

In other words, the person being audited is called the auditee. Meanwhile, the person who conducts the audit process is the auditor.

Well, that's a complete discussion of what auditees are, their duties, and how they differ from auditors.

Basically, the auditee is the party to be audited by an auditor. Examples of auditees include companies, institutions, organizations, government agencies, and so on.

However, if you want to conduct an audit process for a company or agency, you cannot just choose an auditor.

Because, now it is possible that the auditor will commit fraud against his client's financial statements so that the company gets punished and his name becomes bad in the eyes of investors.

Therefore, it is time for you to entrust the auditors from Audithink who use Internal Audit Software for easy audit planning and monitoring real time.

What's more, Audithink has also been trusted by various well-known companies to carry out the audit process. Guaranteed, your audit process will be faster, more accurate, precise, and error-free.

Interested in using it? Immediately contact us and further consult your needs!