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  1. 1. An examination of records or financial accounts to check theiraccuracy.Auditing is a systematic examination of the books and recordsof a business or the organization in order to ascertain or verifyand to report upon the facts regarding the financial operationand the result thereof.
  2. 2.  Basis of Organizational Structure Based on Timing & Scope of Audit Procedures Basis of Specific Objectives behind Audit
  3. 3. Where undertakings are formed under the statute or laws, auditfor such undertakings I made compulsory under the statute thatgovern them.An audit undertaken under any statute or law is called statutoryaudit.A qualified external auditor can conduct a statutory audit.
  4. 4. Private Audit is one that is not mandatory under any statute orlaw. It is undertaken by the enterprises in view of the severalbenefits resulting from it. Audit of Sole Proprietorship Audit of accounts of other entities Audit of Partnership Firm
  5. 5. The government offices, departments, under-takings registeredas companies, are also subject to independent financial audit.Usually a statutory auditor, appointed by the GeneralGovernment on the advice of the Comptroller and AuditorGeneral, audits accounts of government companies
  6. 6. A continuous audit is one where the auditor is required to examine thebooks of account of a business concern at regular intervals sayweekly, fortnightly, and quarterly or as per the requirement of themanagement and quantum of work.Continuous audit is followed in big organizations, where business isextraordinarily large.It is also known as “Running Audit”.
  7. 7. Internal audit as the term implies is an audit conducted within theorganization by an internal auditor appointed by the managementof an enterprise.To ensure that all the assets of the organization are safe-guardedagainst any probable misuse.To highlight the weak areas of the organization and givesuggestions to strengthen them.
  8. 8. Interim Audit is one that relates to an interim period and not to thefull accounting year. It is conducted between two regular audits.It lies between final audit and continuous audit.It may be monthly quarterly or half yearly. When any partner orowner or director or a businessman wants to know the reliableresults during the financial year then such type of audit may beapplied.
  9. 9. A final audit is one where the auditor undertakes the audit workonly at the end of the financial year.The auditor visits his client only once a year and completes theentire work in one session.
  10. 10. It is a procedure in which the figures, as stated in the balance sheetare taken as a base and their authenticity is verified from therecords.It involves the checking of values and provisions, surplus, etc.An auditor should also verify the profit or loss from the profit andloss account since profit or loss is one of the balance sheet items.
  11. 11. Cost Audit as the expression implies, is an audit of costaccounting record. It has been defined in various ways.“The term „Cost Audit‟ means the detailed checking of thecosting system, techniques and accounts to verify theircorrectness and to ensure adherence to the objectives of costaccountancy”.
  12. 12. Central Government may at any time, by order direct that aspecial audit of a company‟s accounts for such period or periodsas may be specified in the order shall be conducted and may bythe same or a different order appoint either a charteredaccountant or the company‟s statutory auditor to conduct suchspecial audit.
  13. 13. This is done to ensure that each individual or company payshis/her/its full tax liability.Audits are conducted on a random basis, or when somethingappears remiss on a tax return.
  14. 14. Management Audit refers to critical and analyticalexamination of the performance of different managerialfunctions in an organization.It involves a critical review of all aspects of the process ofmanagement.
  15. 15. Operational Audit aims at improving the overall performance ofa business undertaking by improving future business operationscarried out by the management.To conduct such audit normally an independent internal auditoris appointed.
  16. 16. A Marketing Audit is a comprehensive, systematic, independentand periodic examination of a company‟s or business unit‟smarketing environment, objectives, strategies and activities witha view to determining problem areas and opportunities andrecommending a plan of action to improve the company‟smarketing performance.
  17. 17. Environmental Audit, is a process to examine the effects -goodor bad- of the operations of an enterprise on the environment.Environmental Audit is an assessment of the nature and extentof harm (or risk of harm) to the environment posed by anindustrial process or activity, waste, substance or noise.
  18. 18. Social Auditing is a process that enables an organization toassess and demonstrate its social, economic and environmentalbenefits and limitations.Audit attempts to assess the social performance of an enterprise.
  19. 19. A Human Resource Audit reviews an organization‟s policies,procedures, and practices concerning human resources.Its purpose is to examine the technical and practical dimensionsof the human resource function and to create a comprehensivesystem that adds value to the organization.
  20. 20. The General Audit alternatively called mini audit, site energyaudit or complete site.This type of audit will be able to identify all energyconversation measures appropriate for the facility given underits operating parameters.