{"id":2291,"date":"2019-10-19T16:53:38","date_gmt":"2019-10-19T11:23:38","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=2291"},"modified":"2019-10-19T16:53:38","modified_gmt":"2019-10-19T11:23:38","slug":"different-types-of-audit","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/","title":{"rendered":"Different Types of Audit"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">What are the types of Audit, What will be Auditing Methods, How Internal Audit will be done? What are the Auditing tools or Procedures to be followed<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2276 size-full\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/Types-Of-Audits.png\" alt=\"Types Of Audits\" width=\"700\" height=\"400\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/Types-Of-Audits.png 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/Types-Of-Audits-300x171.png 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/Types-Of-Audits-20x11.png 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >In this article, we will discuss about...<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1e73be;color:#1e73be\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1e73be;color:#1e73be\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Various_Forms_of_Audit_used_by_Companies\" title=\"Various Forms of Audit used by Companies:-\">Various Forms of Audit used by Companies:-<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Internal_audit\" title=\"Internal audit:\">Internal audit:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#External_Audit\" title=\"External Audit:-\">External Audit:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Forensic_Audit\" title=\"Forensic Audit:-\">Forensic Audit:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Operational_Audit\" title=\"Operational Audit\">Operational Audit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Sales_Audit\" title=\"Sales Audit:-\">Sales Audit:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Review_of_Financial_Statements\" title=\"Review of Financial Statements:-\">Review of Financial Statements:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Financial_audit\" title=\"Financial audit:-\">Financial audit:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Value_for_Money_Audit\" title=\"Value for Money Audit:-\">Value for Money Audit:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Information_Technology_Audit\" title=\"Information Technology Audit:-\">Information Technology Audit:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Statutory_Audit\" title=\"Statutory Audit:-\">Statutory Audit:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Tax_Audit\" title=\"Tax Audit\">Tax Audit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Environmental_Audit\" title=\"Environmental Audit:-\">Environmental Audit:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#Special_Audit\" title=\"Special Audit:-\">Special Audit:-<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Various_Forms_of_Audit_used_by_Companies\"><\/span><b>Various Forms of Audit used by Companies:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It is very uncommon for the companies to remain Compliant Entity in each aspect of the procedure followed by the entity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many types of Audit has been prescribed by a specific Tax or Legal department. Now it depends upon the company what provision is applicable mandatory to them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let us take an overview of Types of Audit may be required to get conduct either by <\/span>Internal or External Authority.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Internal_audit\"><\/span><b>Internal audit:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This type of audit is performed to determine the internal activities of the company and is carried out by internal\u00a0stakeholders. The main function of internal audit is to determine whether or not the internal functions are working properly.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"External_Audit\"><\/span><b>External Audit:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For the purpose of neutrality and unbiasedness, many companies get conduct external audits with third-party firms. When an external form is employed to perform auditing, it is known as an external audit.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Forensic_Audit\"><\/span><b>Forensic Audit:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Forensic auditing acts as proof in that particular subject matter. This is specially used in cases where investigations of the report may be used in the court, done by a specialized accountant only.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Operational_Audit\"><\/span><b>Operational Audit<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The intention behind the operational audit is only to improve efficiency by validating the operational steps. Accordingly, detailed analysis and studying of the goals the processes and procedures are called operational audit.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Sales_Audit\"><\/span><b>Sales Audit:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To<\/span> <span style=\"font-weight: 400;\">Know about the sales processes, <\/span><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">target<\/span><span style=\"font-weight: 400;\">\u00a0reviewing and stock evaluation comes under sales auditing.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Review_of_Financial_Statements\"><\/span><b>Review of Financial Statements:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This is a negative engagement in which auditors are engaged to review and report the financial statements of an organization. In the end, the auditor\u2019s do not express whether the financial statements are true and correct or not<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Financial_audit\"><\/span><b>Financial audit:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The analysis for the fairness and correctness of the information which is there in the financial statements is called financial audit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Financial audits are conducted to know the financial stability of the organization, especially the ones which are in the public domain.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Value_for_Money_Audit\"><\/span><b>Value for Money Audit:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When it comes to determining effectiveness economy and efficiency value for money audit is the way to check if the resources that are purchased are at good quality at low cost.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Information_Technology_Audit\"><\/span><b>Information Technology Audit:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This audit is performed to check the reliability of security systems and security structures. This has become very important since most of the transactions are carried out using information technology<\/span><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"> Right from ATM machines to Internet\u00a0<\/span><span style=\"font-weight: 400;\">B<\/span><span style=\"font-weight: 400;\">anking<\/span><span style=\"font-weight: 400;\">\u00a0where a large amount of money is transferred via computer auditing of information technology is crucial for every financial organization. Most of the organizations provide both IT Audit and financial audit.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Statutory_Audit\"><\/span><b>Statutory Audit:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The auditing that is required by law for local authority about particular financial statements for a specific type of entity is called statutory audit. The common examples of statutory auditing are banks. All banks\u2019 financial statements are required to be audited by my proper audit firms which are approved by the Central Bank.\u00a0 Statutory audit is conducted only after approval by higher authorities and for the submission to official authorities.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Tax_Audit\"><\/span><b>Tax Audit<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Tax Audit is required to be conducted when the Assessee Turnover for the relevant Financial Year exceeds Rs.1 crore as per Sec 44 AB of <a href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/\">Income Tax Act<\/a>,\u00a01961. However in the case of Assessee opt for Presumption Taxation scheme then if his turnover exceeds 2 crores, then only he required to get<a href=\"https:\/\/aktassociates.com\/blog\/tax-audit-under-section-44ab\/\"> Tax Audit.<\/a><\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Environmental_Audit\"><\/span><b>Environmental Audit:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The main objective behind performing an environmental audit is to determine the resource viability in the\u00a0E<\/span><span style=\"font-weight: 400;\">nvironment<\/span><span style=\"font-weight: 400;\"> and how does the large corporation manages it. An environmental audit is usually done by large corporations or not for profit organizations for the government that is the public sector. It ensures that the environment is not damaged beyond a certain limit because of the organization<\/span><\/p>\n<p><a href=\"https:\/\/www.mgrnco.com\/audit-and-assurance-compliance\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2293 size-full\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/Audit-Assurance-Compliance.png\" alt=\"Audit &amp; Assurance Compliance\" width=\"700\" height=\"150\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/Audit-Assurance-Compliance.png 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/Audit-Assurance-Compliance-300x64.png 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/Audit-Assurance-Compliance-20x4.png 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Special_Audit\"><\/span><b>Special Audit:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The main rationale behind conducting this Audit is to get Clarity and transparency for operations. <\/span><span style=\"font-weight: 400;\">The Central Government is empowered to direct special audit in certain cases where generally the Company\u2019s Financial Viability and Bankruptcy is checked along with the interest of Stakeholders of the Company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further,\u00a0 Under the Gst law, Special Audit is also directed by the Central Government and its Terms, Remuneration, and Duration will also be determined by the Central Government. Chartered Accountant or Cost Accountant are nominated by the Central Government <\/span><span style=\"font-weight: 400;\">for<\/span> operations<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are the types of Audit, What will be Auditing Methods, How Internal Audit will be done? What are the &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Different Types of Audit\" class=\"read-more button\" href=\"https:\/\/aktassociates.com\/blog\/different-types-of-audit\/#more-2291\">Read more<span class=\"screen-reader-text\">Different Types of Audit<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":2276,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Different Types of Audit - AKT Associates<\/title>\n<meta name=\"description\" content=\"What are the types of Audit, What will be Auditing Methods, How Internal Audit will be done. 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