Audit exception
An audit exception is a difference or deviation identified by a procedure that needs evaluation against the audit objective. The auditor investigates its cause and considers whether it indicates an error, fraud, control deficiency or other issue.
Worked example
A selected purchase invoice has no evidence of the required approval, so the auditor investigates the control and considers the implications.
Common mistake
Do not automatically extrapolate or dismiss every exception without understanding the population and the test.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |