Postaudit

1. examination of a transaction after its occurrence. A postaudit determines if a company's policies and procedures have been properly followed. The test may be to verify if paid invoices have necessary documentation and approvals. This test verifies internal control procedures and work performed by clerks.


2. in an audit performed by a public accountant, period that exists between the completion of the auditor's field work and the issuance of the report on the financial statements. During this period, the auditor is in constant contact with the client while the audit report is prepared and the final review of the drafted financial statements takes place. The auditor has a responsibility to disclose subsequent events so that the financial statements are not misleading.
See also preaudit.

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