Types of Audit

Submitted to: Submitted By:

Regional Institute Audit Inspector

of Cooperative Gurpreet Singh
Management Gabba
Roll No. 25
Types of Audit :
 There can be many ways to classify audit.

 Following are the various ways of classifying an

audit :
Private Audit
 When the Audit is conducted at the desire of
owners, it is called as “Private Audit”.

 Private Audit is primarily conducted for their own

interest.
 Types of Private Audit :
1. Audit of Sole Trader’s Accounts;

2. Audit of Accounts of Partnership Firms;

3. Audit of Accounts of Individual;

4. Audit of Institutions Not Covered By Statutory

Audit.
Government Audit :
 Audit of Government Offices and Departments is
covered under this audit.

 A Separate Department is maintained by

Government of India known as Account and Audit
Department.

 This department is headed by Comptroller and

Auditor General of India.
Internal Audit :
 When the Audit is conducted by the staff of the
business, it is known as “Internal Audit”.

 The basic purpose of internal audit is early

detection of errors and frauds and their prevention.

 Internal Audit is continuous in nature.

Statutory or Compulsory Audit :
 Statutory Audit is the audit where the Law, through
some Act requires compulsory audit of an
organization or activity.

 For example : Companies Act, Banking Companies

Regulation Act, Co-operative Societies Act, 1912,
etc.
Statutory or Compulsory Audit :
 Statutory Audit is conducted by a Chartered
Accountant only.

 Statutory Audit must be a complete audit, it can’t

be a partial audit.

 Here, Auditor is an independent person and

Management has no control over his work.
Continuous Audit :
 Continuous Audit is the one where a detailed
examination of all the transactions of business is
done by the Auditor or his staff at a regular
interval of time.

 Such interval can be weekly, fortnightly, monthly,

etc.
Periodical Audit :
 When the audit work is conducted after the close of
financial year, it is called as “Periodical Audit”.

 When the accounts are finalized, then the auditor is

invited to audit the accounts.
Balance Sheet Audit :
 Balance Sheet audit relates to the verification of
various items of balance sheet.

 Such as Assets, Liabilities, Reserve and surplus,

Provisions and Profit & Loss Balance.
Operational Audit :
 Operational Audit is an aid to the Management in
the following ways :

 To make recommendations for the improvement of

profitability of the organization.

 To help in achieving other objectives.

Thank You 