Which component of an audit finding describes the reason why things went wrong?

The component of an audit finding that describes the reason why things went wrong is the cause. Understanding the cause is essential as it provides insight into the underlying issues that led to the identified deficiencies or problems. By pinpointing the cause, an auditor can facilitate the development of effective corrective actions and improve processes to prevent recurrence.

In the context of audit findings, the cause serves as the basis for the corrective actions that need to be taken. For instance, if an auditor discovers that financial reporting is inaccurate, identifying the cause—such as inadequate training for the staff handling those reports—enables the organization to address the specific issue, whether that involves providing better training or improving oversight.

The other components serve different purposes in the audit finding structure. The condition details what was found during the audit, criteria specifies the standards against which the condition is measured, and effect describes the impact or consequence of the condition on the organization. Together, these components provide a comprehensive understanding of the audit finding, but the cause is critical for identifying why the condition exists and guiding remediation efforts.