Assessment and audit are related but distinct concepts.
An assessment is a process of evaluating an organization’s operations, processes, systems, or compliance with laws and regulations in order to identify areas for improvement or to measure performance. Assessments can be done for a variety of purposes, such as evaluating an organization’s internal controls, assessing the effectiveness of its operations, or determining its compliance with laws and regulations.
An audit, on the other hand, is a systematic and independent examination of an organization’s financial statements and records to provide assurance that the financial statements are accurate and reliable. Audits are performed by certified or chartered accountants (or auditors), who are responsible for providing an opinion on whether the financial statements are presented fairly and in accordance with the relevant financial reporting framework. Audits are typically required by law, regulation or by stakeholders of the company.
In short, an assessment is a broader term that can encompass a variety of evaluations, while an audit specifically refers to the examination of an organization’s financial statements.
Audit vs Assessment
| Sr. No. | Audit | Assessment |
|---|---|---|
| 1. | An audit is an in-depth investigation into an organization’s security system and IT infrastructure. The evaluation compares company security practices to industry standards or federal regulations. Then, it advises on areas that need remediation or improvement. | Assessment, also known as a vulnerability assessment, examines a company’s technological systems. Then, it identifies problems or gaps within the security. After receiving assessment results, a technician can recommend how to address any lack of security. |
| 2. | Compare actual conditions with legal guidelines | Compare actual conditions with benchmarks |
| 3. | External check by a Professional | Internal, proactive IT check |
| 4. | In-depth investigation | High-level investigation |
| 5. | Audit findings might place blame on specific individuals or groups within an organization. | Assessments, on the other hand, are non-attributive. |
| 6. | The consequences of failing an audit can create a sense of fear | Assessment simply identifies gaps to improve security operations and achieve goals. |
| 7. | If the audit fails the certification can be removed | There’s no certificate |
| 8. | An audit can be: 1. Financial audits 2. Compliance audits 3. Operational audits 4. Investigative audits 5. Information technology audits | Assessment can be: 1. Network-based, 2. Host-based 3. Application-based |