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CH 3 Types of Audit
CH 3 Types of Audit
Types of Audit
Trimester : V
Classification of Audits
Statutory and Non Statutory Audits
• Statutory audits cover :
a) Companies
b) Banking companies
c) Electricity Supply companies
d) Co operative societies
e) Public and Charitable Trusts
f) Corporations
g) Societies
Classification of Audits
Non statutory Audits Cover :
1) Proprietory concerns
2) Partnership firms
3) Unregistered clubs and societies, etc.
1)Quarterly results
2)Interim Dividends
3)Quick preparation of final Accounts
4)Up to date accounts for
banks/investors
5)Check on employees
6)Prevents errors and frauds
7)Thorough final audit
8)Utilisation of Audit Staff
Interim Audit
Disadvantages :
1)Expensive
2)Audit in Instalments
3)Errors and Frauds in books aleady
checked
4)Disrupts Accounts Work
Balance Sheet Audit
Applicability :
1)Strong internal control system
2)Large volume of transactions
3)Internal Audit Department exists
4)Accounts staff is highly qualified,
professional management,
computerised accounts
Balance Sheet Audit
Method on B/S audit :