audit cycle

The process of conducting an audit or a series of audits over time. In external auditing, the audit cycle tends to be scheduled in several important phases:

(i) interim visits to perform *analytical and *compliance reviews;

(ii) attendance at *physical inventory counts; (iii) visits at (or shortly after) financial period-ends to perform detailed *substantive testing; and (iv) the finalization of the audit. From year to year, the audit cycle may envision different areas of focus. For example, in one year the audit team may focus on the *revenue cycle, while in the following year it may skew its tests toward the *purchasing cycle. An *internal audit function’s overall agenda may envision coverage of the *audit universe within a recurring cycle of periodic audits, with different areas of focus in different time periods.