What do "findings" in an audit indicate?

In the context of an audit, "findings" refer to the results that emerge from the audit process, highlighting whether the subject of the audit complies with established criteria, standards, or regulations. This compliance or non-compliance is crucial, as it provides stakeholders with an understanding of the effectiveness of controls, processes, or systems being evaluated.

Each finding typically leads to conclusions about whether the audited entity has adhered to expected laws, regulations, and internal policies. While findings can sometimes suggest improvements or indicate financial implications, their primary role is to denote compliance outcomes. Thus, they help auditors, management, and other stakeholders identify areas of strength and weakness regarding adherence to standards.