{"id":756,"date":"2024-04-18T11:12:38","date_gmt":"2024-04-18T04:12:38","guid":{"rendered":"https:\/\/audithink.com\/?p=756"},"modified":"2026-10-23T19:47:36","modified_gmt":"2026-10-23T12:47:36","slug":"auditee-definition","status":"publish","type":"post","link":"https:\/\/audithink.com\/en\/blog\/auditee-adalah\/","title":{"rendered":"Auditee is: Definition, Duties, & Differences with Auditors"},"content":{"rendered":"

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.<\/p>\n\n\n\n

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<\/a><\/strong>.<\/p>\n\n\n\n

To put it simply, audit is<\/a> one process or evaluation to ensure the accuracy of financial report<\/a><\/strong> company.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Moreover, financial statements are the most important part of business sustainability. Of course, they are required to conduct a financial statement audit process.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

With that said, this article will discuss what auditees are, their duties, examples, and how they differ from auditors.<\/p>\n\n\n\n

Let's take a look at the discussion below!<\/p>\n\n\n\n

What is an Auditee?<\/h2>\n\n\n\n
\"auditee
Illustration of the Auditee Party (Freepik.com)<\/figcaption><\/figure>\n\n\n\n

Auditee is a person or party whose company or institution will be carried out the audit process.<\/p>\n\n\n\n

That is, 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.<\/p>\n\n\n\n

Usually, auditees are companies, organizations, government agencies, individuals, institutions, or other entities that require an audit process.<\/p>\n\n\n\n

The purpose of the audit process itself is to see the truth of the company's information or financial statements. <\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

In addition to the financial statements, the auditee can also ask the auditor to perform audit process on internal issues<\/a><\/strong> and company operations.<\/p>\n\n\n\n

What Are the Duties of an Auditee?<\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

Therefore, an auditee also has several tasks that need to be done. The auditee's duties are as follows:<\/p>\n\n\n\n

1. Preparation<\/h3>\n\n\n\n

One of the important tasks that auditees must perform is preparation. This preparation refers to several aspects before the audit process.<\/p>\n\n\n\n

Starting from the data and administrative needs needed for the audit process, ensuring financial reports are in accordance with regulations, and so on.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

2. Process understanding<\/h3>\n\n\n\n

Not only preparation, but as an auditee must also understand the ongoing audit process.<\/p>\n\n\n\n

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

3. Transparency<\/h3>\n\n\n\n

Furthermore, an important task that the auditee must do is to provide transparent information to the auditor.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

In addition, the auditee is also tasked with providing answers to all the questions the auditor asks.<\/p>\n\n\n\n

Then, another duty of the auditee is to provide access to the auditor to conduct the audit, including providing the necessary facilities.<\/p>\n\n\n\t\t

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What Must an Auditee Prepare Before Being Audited?<\/h2>\n\n\n\n

Beyond the three duties above, the auditee (often called auditi in government) needs a concrete work list. Here is a practical checklist and examples of documents commonly requested. The order and terminology may differ between organizations, and the final list always follows the auditor's request.<\/p>\n\n\n\n

Auditee preparation checklist<\/h3>\n\n\n\n
    \n
  1. Read the engagement letter or audit notification. Note the scope, the period being audited, and the schedule.<\/li>\n\n\n\n
  2. Appoint one coordinator as the communication point with the auditor, so data requests do not get lost.<\/li>\n\n\n\n
  3. Gather the requested documents, then record them in a single list: what was requested, who is responsible, and when it is handed over.<\/li>\n\n\n\n
  4. Reconcile the documents with the accounting records. For example, balances in the reports must agree with the general ledger and bank statements.<\/li>\n\n\n\n
  5. Inform the employees who will be interviewed. They only need to answer according to their duties and the facts they know.<\/li>\n\n\n\n
  6. Prepare workspace, system access, and a meeting schedule with the auditor.<\/li>\n\n\n\n
  7. Record every document that has been handed over and every question that remains unanswered.<\/li>\n\n\n\n
  8. After findings arise, prepare a remediation plan complete with owners and deadlines. A guide is available in the article follow-up on internal audit findings<\/a>.<\/li>\n<\/ol>\n\n\n\n

    What documents do auditors usually request?<\/h3>\n\n\n\n

    The table below is a general example for a financial statement audit. The auditor will adjust it to the risks and scope of each audit.<\/p>\n\n\n\n

    Area<\/th>Commonly requested documents<\/th>Purpose<\/th><\/tr><\/thead>
    Cash and bank<\/td>Bank statements, bank reconciliations<\/td>Test cash and bank balances<\/td><\/tr>
    Accounts receivable<\/td>Receivables aging details, sales invoices<\/td>Assess the existence and fairness of receivables<\/td><\/tr>
    Preparation<\/td>Stock records, physical count minutes<\/td>Match physical stock to records<\/td><\/tr>
    Fixed assets<\/td>Asset register, purchase evidence, ownership documents<\/td>Ensure assets exist and are owned by the entity<\/td><\/tr>
    Payables and purchases<\/td>Supplier invoices, purchase orders, payment evidence<\/td>Ensure liabilities are completely recorded<\/td><\/tr>
    General<\/td>Organization chart, SOPs, meeting minutes, significant contracts<\/td>Understand the entity and its internal control<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    The auditor may also request direct confirmation from third parties, such as banks or customers (SA 505), and request written representations from management (SA 580). All of these are part of audit evidence<\/a> that supports the opinion.<\/p>\n\n\n\n

    Example scenario of an audit interview day<\/h3>\n\n\n\n

    The following illustration is fictional. The auditor is interviewing the warehouse head of PT Contoh Niaga about goods receipt.<\/p>\n\n\n\n

    Auditor's question<\/th>Less appropriate response<\/th>Recommended response<\/th><\/tr><\/thead>
    What is the goods receipt procedure?<\/td>“Usually they just go straight in.”<\/td>“Goods are checked against the purchase order, the quantity is recorded on the receiving report, then an admin inputs it. I can show you an example of the evidence.”<\/td><\/tr>
    Who approves goods returns?<\/td>“Maybe the department head.”<\/td>“I'm not sure. I will confirm with my supervisor and send the evidence today.”<\/td><\/tr>
    Were there any stock differences last month?<\/td>“None.” (when there were)<\/td>“There was a small difference. The cause was an input error, and the correction is recorded in this document.”<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    The pattern of the answers is the same: explain the procedure as it really is, show evidence, and do not guess. If you do not yet know, it is better to promise to follow up with the answer than to give incorrect information.<\/p>\n\n\n\n

    Are auditee and auditi the same?<\/strong><\/summary>\n

    Yes. Auditi is the Indonesian equivalent of auditee, meaning the party being audited. The term appears more often in government settings.<\/p>\n<\/details>\n\n\n\n

    May the auditee provide clarification on findings?<\/strong><\/summary>\n

    In practice, the auditor discusses findings with the auditee before the final report is prepared. At that stage the auditee can provide explanations or additional evidence.<\/p>\n<\/details>\n\n\n\n

    What Is the Difference Between an Auditee and an Auditor?<\/h2>\n\n\n\n

    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.<\/p>\n\n\n\n

    However, you don't need to worry anymore because we will give you a complete answer about the differences between the two.<\/p>\n\n\n\n

    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.<\/p>\n\n\n\n

    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.<\/p>\n\n\n\n

    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.<\/p>\n\n\n\n

    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.<\/p>\n\n\n\n

    In other words, the person being audited is called the auditee. Meanwhile, the person who conducts the audit process is the auditor.<\/p>\n\n\n\n

    FAQ About Auditees<\/h2>\n\n\n\n
    What is an auditee?<\/strong><\/summary>\n

    An auditee is the party \u2014 a company, institution, or individual \u2014 that is the subject of an audit process. The auditee must provide detailed information to the auditor so the audit runs smoothly.<\/p>\n<\/details>\n\n\n\n

    What is the difference between an auditee and an auditor?<\/strong><\/summary>\n

    The difference lies in their position during the audit. The auditee is the party being audited, while the auditor is the party conducting the audit and responsible for evaluating whether the auditee's financial statements meet applicable standards.<\/p>\n<\/details>\n\n\n\n

    Who can be an auditee?<\/strong><\/summary>\n

    An auditee can be a company, organization, government institution, agency, individual, or any other entity requiring an audit.<\/p>\n<\/details>\n\n\n\n

    What are the auditee's duties in the audit process?<\/strong><\/summary>\n

    There are three main duties: preparation<\/strong> of data and administrative needs before the audit, understanding the process<\/strong> of the audit in progress, and transparency<\/strong> \u2014 providing information as it is, answering the auditor's questions, and providing the access and facilities needed.<\/p>\n<\/details>\n\n\n\n

    Why must the auditee be transparent with the auditor?<\/strong><\/summary>\n

    Because the auditor works based on the information and data the auditee provides. Transparency makes the audit effective and efficient, while ensuring there is no fraud during the audit.<\/p>\n<\/details>\n\n\n\n

    Can an auditee only be audited on financial statements?<\/strong><\/summary>\n

    No. Besides financial statements, the auditee can also ask the auditor to audit internal or operational company issues.<\/p>\n<\/details>\n\n\n\n

    Well, that's a complete discussion of what auditees are, their duties, and how they differ from auditors.<\/p>\n\n\n\n

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

    However, if you want to conduct an audit process for a company or agency, you cannot just choose an auditor.<\/p>\n\n\n\n

    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.<\/p>\n\n\n\n

    Therefore, the audit team can use Internal Audit Software<\/strong><\/em><\/a> <\/em>Audithink to help with audit planning and follow-up monitoring.<\/p>\n\n\n\n

    Audithink has been used by various companies, including several SOEs, to manage internal audit processes. Software does not guarantee error-free audit results; their quality still depends on the auditor and the procedures carried out.<\/p>\n\n\n\n

    Interested in using it? Immediately contact us<\/strong><\/a> and further consult your needs!<\/p>","protected":false},"excerpt":{"rendered":"

    An auditee is the party examined in an audit process. Learn the definition, duties, and differences from an auditor.<\/p>","protected":false},"author":6,"featured_media":758,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","rank_math_title":"Auditee adalah: Checklist Persiapan dan Dokumen Audit","rank_math_description":"Auditee (auditi) adalah pihak yang diaudit. Lihat checklist persiapan, daftar dokumen yang diminta auditor, dan contoh jawaban saat wawancara audit.","rank_math_canonical_url":"","rank_math_focus_keyword":"auditee adalah","rank_math_facebook_title":"","rank_math_facebook_description":"","rank_math_twitter_title":"","rank_math_twitter_description":"","_yoast_wpseo_title":"","_yoast_wpseo_metadesc":"","_yoast_wpseo_canonical":"","_yoast_wpseo_focuskw":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","rank_math_robots":[]},"categories":[15],"tags":[27],"class_list":["post-756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-manajemen-audit"],"acf":[],"_links":{"self":[{"href":"https:\/\/audithink.com\/en\/wp-json\/wp\/v2\/posts\/756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/audithink.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/audithink.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/audithink.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/audithink.com\/en\/wp-json\/wp\/v2\/comments?post=756"}],"version-history":[{"count":7,"href":"https:\/\/audithink.com\/en\/wp-json\/wp\/v2\/posts\/756\/revisions"}],"predecessor-version":[{"id":7653,"href":"https:\/\/audithink.com\/en\/wp-json\/wp\/v2\/posts\/756\/revisions\/7653"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/audithink.com\/en\/wp-json\/wp\/v2\/media\/758"}],"wp:attachment":[{"href":"https:\/\/audithink.com\/en\/wp-json\/wp\/v2\/media?parent=756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/audithink.com\/en\/wp-json\/wp\/v2\/categories?post=756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/audithink.com\/en\/wp-json\/wp\/v2\/tags?post=756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}