auditees

An auditee is the person, organization, or entity whose activities, records, and controls are subject to an audit. The term is used across financial, compliance, and performance audits conducted by internal auditors, external auditors, regulators, or independent evaluators.

Auditees have responsibilities to provide access to documents, records, systems, and personnel, and to cooperate with the audit team. They must observe confidentiality and manage the disclosure of findings as required by law or contract. Auditees are typically responsible for addressing audit recommendations and implementing corrective actions, which may be tracked by a management response or action plan.

The audit process generally follows planning, fieldwork, reporting, and follow-up. Auditors collect evidence, assess controls, test transactions, and form an opinion or assessment about the subject under review. The auditee’s management or the relevant department often supplies representations and explanations and may issue a management representation letter.

Outcomes vary by audit type. In financial audits, the auditee may receive an audit opinion on the financial statements. In compliance or performance audits, the report usually contains findings and recommendations for improvement; the auditee is expected to respond with actions and timelines. The context may be corporate, government, or nonprofit, and the term is common in both statutory and internal auditing.

In practice, maintaining professional independence for auditors and ensuring timely, accurate information from auditees are essential to producing useful audit results.