There are several types of audits that can be conducted including private, government, internal, statutory/compulsory, continuous, periodical, balance sheet, and operational audits. Private audits are conducted at the request of owners for their own interests and include audits of sole traders, partnerships, individuals, and other non-statutory organizations. Government audits cover government offices and are conducted by the Account and Audit Department headed by the Comptroller and Auditor General of India. Internal audits are conducted by an organization's own staff to detect and prevent errors and frauds. Statutory audits are required by law and must be conducted by a chartered accountant in a complete manner.
There are several types of audits that can be conducted including private, government, internal, statutory/compulsory, continuous, periodical, balance sheet, and operational audits. Private audits are conducted at the request of owners for their own interests and include audits of sole traders, partnerships, individuals, and other non-statutory organizations. Government audits cover government offices and are conducted by the Account and Audit Department headed by the Comptroller and Auditor General of India. Internal audits are conducted by an organization's own staff to detect and prevent errors and frauds. Statutory audits are required by law and must be conducted by a chartered accountant in a complete manner.
There are several types of audits that can be conducted including private, government, internal, statutory/compulsory, continuous, periodical, balance sheet, and operational audits. Private audits are conducted at the request of owners for their own interests and include audits of sole traders, partnerships, individuals, and other non-statutory organizations. Government audits cover government offices and are conducted by the Account and Audit Department headed by the Comptroller and Auditor General of India. Internal audits are conducted by an organization's own staff to detect and prevent errors and frauds. Statutory audits are required by law and must be conducted by a chartered accountant in a complete manner.
of Cooperative Gurpreet Singh Management Gabba Roll No. 25 Types of Audit : There can be many ways to classify audit.
Following are the various ways of classifying an
audit : Private Audit When the Audit is conducted at the desire of owners, it is called as “Private Audit”.
Private Audit is primarily conducted for their own
interest. Types of Private Audit : 1. Audit of Sole Trader’s Accounts;
2. Audit of Accounts of Partnership Firms;
3. Audit of Accounts of Individual;
4. Audit of Institutions Not Covered By Statutory
Audit. Government Audit : Audit of Government Offices and Departments is covered under this audit.
A Separate Department is maintained by
Government of India known as Account and Audit Department.
This department is headed by Comptroller and
Auditor General of India. Internal Audit : When the Audit is conducted by the staff of the business, it is known as “Internal Audit”.
The basic purpose of internal audit is early
detection of errors and frauds and their prevention.
Internal Audit is continuous in nature.
Statutory or Compulsory Audit : Statutory Audit is the audit where the Law, through some Act requires compulsory audit of an organization or activity.
For example : Companies Act, Banking Companies
Regulation Act, Co-operative Societies Act, 1912, etc. Statutory or Compulsory Audit : Statutory Audit is conducted by a Chartered Accountant only.
Statutory Audit must be a complete audit, it can’t
be a partial audit.
Here, Auditor is an independent person and
Management has no control over his work. Continuous Audit : Continuous Audit is the one where a detailed examination of all the transactions of business is done by the Auditor or his staff at a regular interval of time.
Such interval can be weekly, fortnightly, monthly,
etc. Periodical Audit : When the audit work is conducted after the close of financial year, it is called as “Periodical Audit”.
When the accounts are finalized, then the auditor is
invited to audit the accounts. Balance Sheet Audit : Balance Sheet audit relates to the verification of various items of balance sheet.
Such as Assets, Liabilities, Reserve and surplus,
Provisions and Profit & Loss Balance. Operational Audit : Operational Audit is an aid to the Management in the following ways :