2. Meaning of auditing
Auditing attempts to ensure that the books of accounts are properly maintained
by the concern as required by law. Auditors consider the propositions before
them, obtain evidence, and evaluate the propositions in their auditing report
3. TYPES OF AUDITING
on the basis of organization
On the basis of functions
On the basis of audit approach
On the basis of audit dimension
4. ON THE BASIS OF ORGANIZATION
• Statutory audit
it refers to the audit of an organisation perform under a statute.
In this types of audit the rights , powers, duties are laid down by statute which
can not be altered
• Voluntary or non-statutory audit
these audits are also known as “private audit”. In the types of audit duties and
powers are decided as per the agreement between the auditor and the client.
5. On the basis of functions
Internal audit
it is a type of audit conducted by the own staff of the organization. It is done to verify the reliability and
authentically of the financial accounting
External audit
it is a type of audit performed by auditor outside the business organization. Qualified chartered
accountant are appointed as external auditor.
6. On the basis of audit approach
Time basis
a. continuous audit
b. interim audit
c. periodical or final audit
Scope basis
a. complete audit
b. partial audit
Objective basis
a. balance sheet audit
b. occasional audit
7. On the basis of audit dimension
Tax audit
Management audit
Cost audit
System audit
Cash audit
Social audit
Energy audit
Proprietary audit
Performance audit
Secretarial audit