Auditing types on the basis of Periodicity and Subject Matter
An audit is a task of careful and in detail checking or examining of cost and financial statements from company or organization to make sure that they are correct and complete or a report that showing the results of this check. It is the process of reviewing and investigating any aspect of a business, whether financial or nonfinancial. It can apply to an entire organization or might be specific to a function, process, or production step.
On the basis of Periodicity of Audit:
- Continuous audit: A continuous audit or detailed audit, which involves a detailed examination of the books of account at regular intervals of, say one month or three months.
- Periodical Audit: Periodical audit is one which is taken up at the close of the financial or trading period when all the accounts have been balanced and a trading and profit and loss account and the balance sheet have been prepared.
- Interim Audit: Some writers opine that an audit which is conducted in between the two annual audits, with a view to find out interim profits to enable to company to declare an interim dividend, should be called interim Audit.
- Occasional Audit: As the name indicates this type of audit is conducted once a while whenever the need Aries and the client desire it to be carried out.
On the basis of a subject matter of Audit:
- Financial Audit: Financial Audit is an examination of financial statement to express an opinion of the truth and fairness of financial condition and operating results of the entry.
- Cost Audit: Cost audit of cost records of the company. It is checking of cost accounts and costing techniques, methods, system followed by the entity.
- Operational Audit: Operational Audit is a review of operations of an entity. It is generally carried out by internal auditors.
- Management Audit: Management Audit is a critical review of policy and practices of management. It involves a review of the various process of management.