What type of audit is typically performed after transactions have been completed?

What type of audit is typically performed after transactions have been completed?

• A. Operational audit
• B. Concurrent audit
• C. Retrospective audit
• D. Baseline audit

Answer: (C)

A retrospective audit is conducted after transactions have been completed, focusing on evaluating and analyzing transaction records and their outcomes. This type of audit is often used to assess compliance with policies and regulations, ensuring that the organization adheres to required standards after the activities have taken place. By reviewing past transactions, the audit can identify any discrepancies, areas for improvement, or potential risks that may have arisen during the transaction process. This retrospective approach differs from concurrent audits, which take place while transactions are happening, allowing for real-time adjustments and oversight. Meanwhile, operational audits evaluate the efficiency and effectiveness of organizational processes but do not specifically relate to the timing of transactions. Baseline audits typically assess the initial conditions before implementing new procedures or systems, rather than focusing on completed transactions.

A retrospective audit is conducted after transactions have been completed, focusing on evaluating and analyzing transaction records and their outcomes. This type of audit is often used to assess compliance with policies and regulations, ensuring that the organization adheres to required standards after the activities have taken place. By reviewing past transactions, the audit can identify any discrepancies, areas for improvement, or potential risks that may have arisen during the transaction process.

This retrospective approach differs from concurrent audits, which take place while transactions are happening, allowing for real-time adjustments and oversight. Meanwhile, operational audits evaluate the efficiency and effectiveness of organizational processes but do not specifically relate to the timing of transactions. Baseline audits typically assess the initial conditions before implementing new procedures or systems, rather than focusing on completed transactions.