Definition of Audit and Types of Audit (Discuss Completely)
Definition of Audit and Types of Audit (Discuss Completely) – In doing a job, there must be a target that is set to be pursued. The target must be a race to get the spirit in referring to the work.
The work that is being done is certain that someone feels problematic or within a company there are those who are still lacking. To be able to overcome these problems, auditors need to audit the problems they face.
Definition of Audit and Types of Audit (Discuss Completely)
The problems faced will be audited and will get the right results for the incident. In order to get to know more about what an audit is, it will be explained as follows:
Definition of Audit
The definition of an audit is a process carried out by auditors in obtaining accurate evidence about economic activity in an entity. In carrying out the audit, an equalization of the degree of economic activity in the entity is carried out, to see whether it is in accordance with what has been determined or not. The results obtained from the audit will then be reported to interested parties in the entity.
Another explanation of the audit is a systematic process that objectively obtains or evaluates evidence about the questions it has to do with activities as well as activities in the economy within an entity, which have the objective of establishing a conformity with the entity's interested party inquiries the.
Type of Audit
There are quite a lot of types of audits because they are divided into several parts. The types of audits will be explained as follows:
Performance Audits
This audit is carried out by the auditor to find out how efficient and effective operational activities are in a company. In this case, an auditor is expected to be able to make objective observations and provide comprehensive results on operational activities in the company or entity.
Financial Statement Audit
This audit is carried out by an auditor on finance in a company, which discusses whether the report that has been provided is in accordance with the criteria that have been set or not.
Compliance Audits
This audit is carried out in order to be able to see in a company, whether it is in accordance with what has been determined, regulations and also applicable requirements such as for example an agreement that has been determined whether it is in accordance with what is in the law on something Country. The origin of these criteria is different and do not come from the same source.
Auditor Type
Auditors in conducting audits are different and varied. The different types of auditors are divided into several parts including:
Government Auditor
Auditors who work to serve the government. They audit to be able to assist in a company, institution or government organization that is in operational activities or other activities.
Internal Auditors
Auditors who work for a company or entity they audit. The results will be given back to the company.
Independent Auditors
Auditors who work for a company or a public accounting firm. They must be independent (not affected) to their clients.
Here's an explanation about Definition of Audit and Types of Audit (Discuss Completely) explained by About Knowledge. By conducting an audit, it can be seen with certainty what is needed or desired so that it fits and is in accordance with what actually happened. Hopefully useful 🙂
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