Basic Characteristics of Audit

The basic characteristics of audit.

1. Independence Characteristics

Independence is the essential characteristic of auditing, and also the necessary condition to ensure the smooth progress of auditing work.

In order to ensure the independent exercise of audit supervision power, audit institutions must be independent full-time institutions, which should be set up separately and have no organizational affiliation with the auditees. In order to ensure that auditors can check and report factually, objectively and impartially, auditors and auditees should not have any economic interest relationship and participate in the operation and management activities of the auditees; if auditors have an interest relationship with the auditees or audited items, they should avoid it. Auditors'exercise of audit functions and powers in accordance with the law shall be protected by the law of the state.

2. Authoritative Characteristics

Authoritativeness of audit is a necessary condition to ensure the effective exercise of audit power. Authoritativeness of audit is always related to independence. It can not be separated from the independent status of audit organizations and the independent practice of auditors. National laws of various countries have made clear provisions on the implementation of audit system, the establishment of audit institutions and the status and power of audit institutions, so that audit organizations have the authority of law. The implementation of audit supervision system in our country is clearly stipulated in the Constitution, and further stipulated in the audit law: the State implements the audit supervision system. The State Council and the local people's governments at or above the county level shall establish audit institutions. Audit institutions shall exercise audit supervision in accordance with the functions and powers and procedures prescribed by law.

3. The Characteristics of Justice

Closely related to authority is the fairness of audit. In a sense, without fairness, there is no authority. The fairness of audit reflects the basic requirements of audit work. Auditors should stand on the position of the third party, carry out practical and realistic inspection, make judgments that are unbiased and conform to objective reality, make fair evaluation and deal with them fairly, so as to determine or relieve the auditees'economic responsibility correctly. Only by maintaining independence and impartiality, can auditors be trusted by the auditor's authorizers or clients as well as by the auditors. Only the public can truly establish the image of audit authority.