types of audit.ppt

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NAME : BHAVESH JAIN

STD:T.Y.BCOM

ROLL NO:8027

SUB:AUDIT & TYPES

OF AUDIT

2ND TERM


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Defination

What is auditThe general definition of an audit is

an evaluation of a person, organization, system,

process, enterprise, project or product. The

term most commonly refers to auditsin accounting, but similar concepts also exist in

project management, quality management,

water management, and energy conservation.
http://en.wikipedia.org/wiki/Evaluationhttp://en.wikipedia.org/wiki/Accountancyhttp://en.wikipedia.org/wiki/Accountancyhttp://en.wikipedia.org/wiki/Evaluation


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Following are

the types ofAudit


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1.Government auditingAudit forms an indispensable part of the financialadministration

and is one of the important organs necessary to ensure

the sound

functioning of a Parliamentary Democracy. It is the main

instrument to

secure accountability of the Executive to the Legislature.

Audit assists

Parliament/Legislature in exercising its financial control

over the

Executive, to ensure that funds voted by the

Parliament/Legislaturehave been utilized for the purpose intended and the funds

authorized to

be raised through taxation and other measures have been

assessed,

collected and credited to the Government properly.


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2.Audit control

State Audit is the main instrument tosecure accountability of the

lower formation in the set up to the

Administration and of the

Administration to the Legislature in thearea of financial

administration. The scope of State

Audit encompasses following

elements:


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A. Fiscal accountability

This includes fiscal integrity, full disclosure and compliance

withapplicable laws and regulations.

B. Managerial accountability

It is concerned with efficiency and economy in the use ofpublic

funds, property, personal and other resources.

C.Programme accountability

To check whether Government programmes andactivities are

achieving the objective established for them with due

regard to both

costs and results.


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3.Financial Audits

Address questions of accounting,

recording, and reporting of financial

transactions. Reviewing the adequacy of

internal controls also falls within the scope

of financial audits.Compliance Audits seek to determine if

departments are adhering to federal, state,

and University rules, regulations, policies,and procedures.


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4.Operational Audits

Examine the use of department/universityresources to evaluate whether those resources are

being utilized in the most efficient and effective

way to fulfill the department's/University's missionand objectives. An operational audit may include

elements of a compliance audit, a financial audit,

and an information systems audit.


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5.Investigative Audits

Are performed when appropriate. These audits focus

on alleged violations of federal and state laws and of

University policies and regulations. This may result in

prosecution or disciplinary action. Internal theft,

misuse of University assets, and conflicts of interestare examples of investigative audits.


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Information Systems (IS) Audits addressthe internal control environment of

automated information processing

systems and how these systems are used.IS audits typically evaluate system input,

output and processing controls, backup

and recovery plans, and system security,

as well as computer facility reviews.


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THANKYOU.

types of audit.ppt

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