Which of the following statements from an audit finding is the condition?

Definition of the Condition in an Audit Finding:

The "condition" describes the actual state observed during the audit. It highlights what occurred in

practice, serving as the factual basis for the finding.

In this case, the condition is the absence of receipts for multiple credit card purchases.

Explanation of Answer Choices:

A . We identified multiple credit card purchases without receipts to support them: Correct. This is the

observed issue (condition).

B . Government policy requires a cardholder to submit receipts for all purchases: This is the "criteria,"

which defines the standard or rule being audited against.

C . Finance Department personnel did not regularly review purchases to ensure compliance: This is

the "cause," explaining why the condition occurred.

D . We recommend that the government implements a timely review of all credit card purchases:

This is the "recommendation," not the condition.

Reference:

GAO, Government Auditing Standards (Yellow Book).

AICPA, Elements of an Audit Finding Guidance.