AUDITING & TYPES OF AUDIT

LALA LAJPATRAI COLLEGE OF COMMERCE

NAME : BHAVESH .A . JAIN STD : TYB.com DIV: A ROLL NO : 8027 TOPIC: TYPES OF AUDIT

Presentation Outline
I. Defination of Auditing II. Types of Audit

I. Defination of Auditing
Audit and Assurance Standard AAS-1 by Institute of Chartered Accountants of India(ICAI) Auditing is the independent examination of financial information of any entity, whether profit oriented or not, and irrespective of its size or legal form, when such an examination is conducted with a view to expressing an opinion thereon

CONT..
According to Montgomery Auditing is a systematic examination of the books and records of a business or other organisation, in order to ascertain or verify, and to report upon the facts regarding the financial operations and results thereof.

II. Types of Audit

A. B. C. D. E. Based on Authority Based on Scope Based on Time Based on object Other Types

Based on Authority

Statutory Audit It is Mandatory. Auditor must be CA or CWA Non-Statutory Audit It is optional and not compulsory Carried at the directional of the Proprietor

Internal Audit
Verify the accuracy record Make investigation

Based on Scope
Complete Audit Check each & every Transaction recorded in the books of accounts Partial Audit Some part of Transaction are scrutinised

Based on Time
Continuous Audit
Carried out full the year Conducted regular & irregular intervals Final Audit Known as periodical audit Starts after completion of year Interim Audit Get periodic data on sales , production etc Necessary for the declaration of dividend Concurrent Audit Check daily cash transaction Verify the sale and purchase

Based on Object

Special Audit When affair of any company are not managed as per the sound business principle

Cost Audit

Verification of cost records maintained by the organisation Auditor reports government and copy sent to company

Based on Object

Management Audit Most modern technique of audit Audit is done to find out the weaknesses and the inefficiencies of the management

Social Audit To evaluate the total performance to society Contribution to national income growth.

Other Types Of Audit

Occasional Audit Carried out occasionally as per need. Audit In depth Investigation of each transaction from origin to conclusion.

Cash Audit Examines only cash transaction. Operational Audit Improve the profitability. Evalute the policies & procedures. Guide the management

Other Types Of Audit

Tax Audit Assessing Correctness of calculation of taxable profits Done to ensure compliance with the provision of the income tax Act 1961.

Efficiency Audit Part of perfomance Audit Concerned with evaluation of performance

THANK YOU