Types of Audit

Audit is necessary in order to verify whether a company has prepared its accounts properly or not and also whether they reflect true and correct picture of company’s financial position. Given below are the various types of audit which happens in normal course –

  1. Statutory audit – This refers to that inspection which is compulsory and it has to made by every company if it falls under that category of companies which requires audit, failure to comply can lead to penalties on the company.
  2. External audit – It refers to that under which an outside group or person check the books of accounts in order to see whether they are accurate or not.
  3. Internal audit – These are done by the company staff and they are primarily for organization internal use so that they can rectify errors before company final accounts are prepared and there results are not published outside.
  4. Special audit – These are conducted in order to find any specific errors or irregularities in the financial statements of the company. Alternatively it may also involve specific department or business unit if company has multiple business units.
  5. Management audit – This has emerged only few years back, it refers to appraisal of organization top management in order to see whether they have performed their duties and responsibilities towards both company as well as its shareholders well or not.

Apart from above there are many audits like environmental, cost, financial statements, production, quality etc…

0 comments… add one

Leave a Comment

Related pages

cost oriented pricing strategywhat are the disadvantages of a command economyexample of a conglomerate mergerdisadvantages of privatizationdisadvantages of mixed economic systemnondurable goods definitiontraditional economics definitionwhat is crossing chequediscounting of bill of exchangewhat are the advantages of autocratic leadershiphow to fill out a withdrawal slip at a bankfull form of rtgs in bankingeps advantages and disadvantagesmonopolistic characteristicsintermediate goods definition economicsdistinguish between normal and inferior goodsunearned revenue in balance sheetexamples of substitute goods in economicsa characteristic of capital budgeting iscibil score rangedifference between tariffs and quotasdisadvantages of horizontal analysisadvantages of decentralized organizationfund flow statement definitiondifferentiate between systematic and unsystematic riskmeaning of fluctuate in hindidifference between carriage and freightinferior goods economicsmarket skimming pricing examplesadvantages of mixed economy in south africaveblen goods examplesdefine job costingskimming pricing advantages and disadvantagesdiscounting and rediscounting of billsmeaning of unsystematic riskdifference between shopping mall and department storedisadvantages of decentralized organizational structureexamples of indirect quotationindirect quotationsadvantages and disadvantages of economic globalizationexplain process costingdual aspect concept of accounting with exampleshow to do intraday tradingdisadvantages of marketing segmentationsalary received journal entrydifference between a finance lease and an operating leasedisadvantages of inflation accountingjit advantagesgatt formdisadvantages of fifoadvantages and disadvantages of international marketingdirect quotation indirect quotationvertical merger companieslaw of marginal diminishing utilityexamples of cost push inflationentry for unearned revenuepurpose of preparing trial balancestrengths and weaknesses of market economymonopolistic economynondurable good definitiondifference between inferior and superior goodswhen is a trial balance preparedpayback in financeelastic goods examplesdisadvantages and advantages of advertisementwhat are some examples of durable and nondurable goodsfeatures of decentralisationecs clearingcentrally planned economy advantagesadvantages of command economyjain irrigation dvr share pricecharacteristic of monopolistic competitiondifficulties in barter systemcapm explainedadvantages and disadvantages of accounting ratios