How should auditors handle discrepancies found during their audit process?

When auditors encounter discrepancies during the audit process, it is crucial for them to investigate further and take appropriate steps based on their findings. This approach ensures a thorough understanding of the root cause of the discrepancies and allows auditors to assess any potential impact on the overall audit conclusions.

By investigating the discrepancies, auditors can determine whether they are due to innocent errors, misunderstandings of policies, or more serious issues such as fraud or non-compliance. Taking appropriate steps may involve gathering additional evidence, questioning relevant personnel, or consulting with other departments to ensure that the discrepancies are accurately interpreted.

This method aligns with the principle of providing a fair and accurate audit opinion, as well as ensuring compliance with auditing standards. It also highlights the auditor's responsibility to look beyond initial findings, ensuring that all relevant information is considered before finalizing the audit report. This proactive approach enhances the quality and credibility of the audit process, ultimately leading to better organizational oversight and governance.