Auditing types on the basis of Periodicity and Subject Matter

Auditing types on the basis of Periodicity and Subject Matter

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.

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