What should be the first step in the audit process?

Determining the scope of the audit is an essential first step in the audit process because it defines the boundaries and the focus of the audit. By establishing the scope, auditors can identify what specific aspects of the practice or department will be evaluated, such as particular services, time frames, or types of documentation. This step sets the foundation for all subsequent activities, ensuring that the audit is relevant and focused on the key areas of concern or interest.

Once the scope is determined, auditors can proceed to gather the documentation necessary for their analysis. This focused approach helps in efficiently collecting only the pertinent information needed for the audit rather than sifting through excessive or irrelevant data. Establishing a clear scope aids in maintaining the audit’s objectives, making it possible to align findings with the expectations of stakeholders and regulatory requirements. Thus, identifying the audit scope is critical to ensuring a structured and effective audit process.