Audit, assurance & evidence · Working
Observation
Also called: process observation
ELI5
Watching a process or control being performed.
Used in conversation
“The control owner needs to resolve the exception around observation.”
Pitch context
You will see “Observation” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches audit, assurance & evidence.
Why it matters: In audit, assurance & evidence, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Sources & evidence · 5
Direct term-level sources and supporting source families.
- IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
- Financial Accounting Standards Board — FASB Accounting Standards CodificationDirect source · primary · checked 2026-08-16
- OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16
- U.S. Securities and Exchange Commission — EDGAR and filing resourcesSupporting source family · primary · checked 2026-08-16
- National Institute of Standards and Technology — Computer Security Resource Center GlossarySupporting source family · primary · checked 2026-08-16