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TAX AUDIT

• Tax audit Is type of audit that ls performed by government tax

department or tax authority. Tax audit could be performed as
the result of In-compliant found by government agency or the
schedule set by government tax department.

• Entity need not invite or engage with tax authority to come to

perform lax audit. They will come by themselves. To minimize
the penalty as the result of tax audit, entity is recommended lo
follow the entire requirement set by tax law and for those areas
that they are not sure; entity should engagement with tax
consulting firm for advising.
Information Systom Audit or Information Toc hnology Audit (IT
Audit)

• Information system audit Is sometime COIied IT audit. This type of audit

assesses oner c hecks tho rellabl lty of security system, lnforma11on security
structure, and 1ntegrity of system.

• Sometimes financial auditing also require to do IT auditing as now

technology ls lncreas ng and most of client's financial reports are rE1corded
by comprex accounting software. Audit approach also has changed dui, to
ttie changed management's approach In recording and reporting their
entity's financial Information.

• Norma\lY, before relying on Information system (software) that ls used for

produc ng llnanclal statements, auditor Is required to have IT audit team to
test and review that Information system first.

• This kind of audit differs from financial audit. As you maY. know. most or
the big firms have this kind or services. They not only provide IT audit, but
also olfers as consultant on the lnformatlon system areas.
COMPLIANCE AUDIT

Compllonco oud1t i. typo of oud,t lhot chocke against onlornat pollclea

and procedures as well os Laws and regutauona Laws and regulation
here we mean the Government's law where the bualneu la operating.
For oxomple. In the banking Industry. thoro are many kinda of
regutallons. bankers have to follow end comply With Most of tho
control banks roqulre commerclol banks to sot up tho complalnl rovlow
(ossoaamont) or compllonce audit to moko auro thot thoy ore
cornptylng woth those laws end rcgulatlona Entity may also osalgn Its
Internal audit function 10 rovlow whether enmy·s Internal policies and
procedures are complied wuh and elfecuvely followed
Compliance audit Is port of the system that Is used by an entity's
management to enforce tho olfectlvonoH of tmplemontetlon of
government's tow and regulotlon. and entity's lntornol polletos and
procedures
OPERATIONAL AUDIT

• Operational audit is a type of audit service wherein

review is mainly focused on the key processes ,
procedures, system , as well as Internal control which
the main objective is to improve the productivity, as well
as efficiency and effectiveness of operation .

• Operation audit is also targeted at the leak of key

control and processes that cause waste of resources
and then recommend for improvements.

• Or:,erational audit Is that part of Internal audit and main

aim Is to add value to the business. Systems and highlY.
discipline Is also helps to make sure the operational
audit add value to the organization.
 PROPRIETY AUDIT
• The Propriety Audit means the verification of
following main aspects to find out whether:
(I) Proper recording has been done in
appropriate books of accounts.
(Ii) The assets have not been misused and have
been properly safeguarded.
(iii) The business funds have been utilized
properly.
(Iv) The concern Is yielding the expected results
• The svstt.•m of Propn ctv Audit Is applied
re"ipPct t o GovernmE>nt <.ompanie,;, Govt
Department becau-.e publ ic money and p11bllc
lnlCUC3.l .arc ,nvolvcd thcrc,n.
• Propriety Audit c.trr-, out to check. m•n
whether thP transaction,; havr. bePn done In
conformity with es t ablished rules. princlples
and c!>tiJbh!>hcd !>tam.lard
 Balance Sheet Audit
• It Is an evaluation of the accuracy of Information found In a company's
balance sheet.
• It Involves a number of checks as auditors conduct this evaluation based
on supponing do01ments.
• Involves verification of the value of assets, llabDltles, the balances or
reserves and provisions and the amount of profit earned or loss suffered
by a firm during the year.
• It Is a condensed statement that shows the flnandal position of an entity
on a specified date, usually the last day of an accounting period
• It Is used to detect Irregularities or weaknesses In a company's accounting
system.
 What is a social audit?
• A social audit Is a way of measuring, understanding,
reporting and ultimately Improving an organlzallon's social
and ethical performance.
• A social audit helps to narrow gaps between vision/goal
and reality, between efficiency and effectiveness.
• It values the voice of stakeholders, Including
marginalized/poor groups whose voices are rarely heard.
• Social auditing Is t aken up for the purpose of enhancing
local governance, particularly for strengthening
accoyntabilrtv and transparency in local bodies.
• The key difference between development and social audit
is that a social audit focuses on the neglected issue of
~odal lmp~cts. while a development audit has a broader
ocus lnclu Ing environment and economic Issues, such as
the efficiency of a project or programme.
 Objectives of social audit
• Assessing the physical and financial &i!JU.batwean
needs and resources available for local development.
• Creating awareness among beneficiaries and providers
o f loc.:il social and productive services.
• Increasing efficacy and effectiveness o f local
development programmes.
• Scrutiny o f various policy decisions, keeping I n ~
stakeholder Interests and prlorltlas. particularly of rural
poor.
• Estimation o f the opportuni ty cost for st akeholders of
not getting timely access to public services.
 Meaning of 'True and Fair'

• The e><pression 'true & fair view' is an abstract idea of

immense importance & difficulty.
• It Is I ed u cl1ncs rnng•ne from
.i··_. "-1 Dnd fan c ng
• It ,s used to describe the required standard of financial
reporting but equally to justify decisions, which require a
certain amount of arbitrary Judgement making.
uc or ,,1n1on
• It 1s an ldeallstlc aim for preparers of financial statements to
strive for
- Advantages of social audit

Tr-tho
community on
participatory locaJ
Enoouragos loc.il
domocracy.
Enooumgos
convnunlty
portlOlpellOfl .
plOlllWIQ .

Boneflla Promotes collective OU>'&lopt human

doc1111on mnking r0$0Ur0r., ones
diaadv&nUIOOd and r.nartng
oro~. roaponsJbllllJM.
sodDJcap!IRI
 ENVIRONMENTAL AUDIT
\,\rh.it h, tnv ro nmcnwl Audit ??

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