Different Types of Auditing

Different Types of Auditing

Well we have brief introduction about auditing now that what is auditing and what is the work of auditing in the firms, that was very important to learn about the auditing. It is vast subject to study and it has so many types of auditing. To put it simply, audit firms provide such facilities to the internees to know about the audit briefly. And you can learn more about audit after completing the icv certification which will help you to learn about the audit. We have so many types of auditing as below:

  • External audit
  • Internal audit
  • Forensic audit
  • Statutory audit
  • Financial audit

External audit:

Well what is external audit? It is type of audit where audit firms provide you services about consultancy, legal services, tax services, risk management and financial advisory to their clients. In tax services they submit your monthly sales tax returns and yearly income tax returns , provide financial advisory that how to main the finance for the betterment of the firm. Provide consultancy about the business. These firms some times called CPA. This type of audit need proper code and ethics and has to follow these ethics and codes strictly.

Internal audit:

In this type of audit charted account companies send their internees in the firms who required the internal audit. These auditors sit there and check everything in a specific period. Internal audit could be for 1 year or for more than 1 year. Auditors have to audit everything which exists in the firms. Mostly firms hire these auditors to overcome the errors and find the frauds. Companies mostly audit the stores for the stock valuation.

Forensic audit:

This audit is performed by the auditors who are good at both skills accounting and investigation. This audit investigates the financial matters to find out the fraud and to find the crime or for insurance claims. This audit needs a proper procedure and plan.

Statutory audit:

This audit refers to the financial statements for a specific period. For example banking sectors hire the audit firms for their financial statements which central bank can require from the banks. This needs a proper law for the audit.

Financial audit:

This audit normally is done by external auditors who have CPA facility. This audit refers to the companies who need yearly financial statements and have to prepare tax returns for the yearly.