What does the term "audit universe" refer to in auditing?

The term "audit universe" refers to the range of potential audit activities available for examination within an organization. This encompasses all possible areas, functions, or processes that could be evaluated to assess compliance, efficiency, or effectiveness. By defining the audit universe, auditors can identify and prioritize specific audits based on risk assessment and strategic goals.

This choice captures the comprehensive nature of the audit universe, highlighting that it serves as a broad framework from which specific audit projects can be selected. Understanding the audit universe is crucial for auditors, as it allows them to effectively allocate resources and focus on areas that may present greater risks or opportunities for improvement.