Criteria is standards, measures or expectations used in making and evaluation and/or verification of

evidence. When an internal auditor wants to do an audit test, they need standards, measures or
expectations to be relies on. If the internal auditors want to do an audit field work, they must have
SOP or internal policies that can be compared against selected samples to conduct their audit test.
For example, payment more than RM50 000 need to be approved by two persons. It is a criteria that
need to be complied by the management in order to make a payment.

Condition is a factual evidence internal auditors found during the audit engagement. When an
internal auditor select the sample, condition describes the situation that exists or circumstances that
have been observed and documented during the engagement in the sample selected.