Any company regardless of its size needs the implementation of audit methods. Although whose main objective is to achieve financial and economic transparency of the company against society. Its important for them to know the various types of audits that occur in the financial year of the company.
Audit
The audit is a financial resource widely used for achieving specific results. In a broad sense, it implies the verification of the financial, administrative and operational information. Actually that has been presented to verify its reliability. In addition, a responsible person specialized in the matter.
All audits conclude with the preparation and presentation of a document, in which the results of the same will be collected. Particularly which will serve as a reference to third-party agents. Although if they are members of the company or an official body.
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Different Types of Audits
Following are the various types of audits as per the nature and requirements of company or organization.
According to the Origin:
External
It is best known, refers to the analysis of the accounts contained in the balance sheet of the company. Actually that are performed by an external professional auditor and by legal requirement.
Internal
This type of an audit made by the employees of the company in order to validate the operational techniques. As well as their consistency with respect to the company’s policy
According to the Area where it is made:
Financial Audit
It examines the financial statements of the accounting subject, in order to issue a technical and professional report. In fact that merges the clarity in the financial operations carried out by the same in a given period.
Administrative Audit
Review and evaluate the methods and procedures of the administrative process of an economic entity. In order to ensure compliance with plans, policies, laws and regulations. As well as measuring the impact on the structure of the organization and its productivity.
Operational Audit
This type of an audit evaluates the company and its management. In order to propose improvements to increase efficiency and productivity efficiency. It is done at the request of the management. However it is carried out by an external auditor.
Government Audit
It is a public audit, it is carried out by a governmental entity with the powers of law to do it. However in some countries the person in charge of carrying it is the court of accounts.
Comprehensive Audit
Evaluate all possible and useful information to complete and accurate report about the performance of the organization. Moreover including organizational structure, financial information, internal control procedures. Along with objectives and compliance with laws.
Systems Audit
It is the comprehensive evaluation through activities, techniques and procedures, in order to analyze, verify and forge recommendations/ Regarding the planning, security and efficiency of computer assistance within the company, in search of its improvement.
Accountant
It is the review of the economic situation of the company, verifies all accounts if for payment, collection. Also expenses and sales, made by an external auditor.
Audit by Specialty of Area
Tax audit
It is the type of audit in charge of examining. The facts with tax character, it can be applied to companies, businesses, etc. Or government applied to public institutions or to agencies dependent on the state or government.
Labor Audit
It is the objective, reliable and impartial study that evidences the social-labor scenario of a company. Taking into account the situation and risk of the company and risks for non-compliance.
Environmental Audit
They are the audits whose processes are oriented toward the detection of possible environmental problems. That could cause the development of projects, the work of the industries and others. It also appreciates possible opportunities for the conservation of the environment. For example, new forms of energy, saving of natural resources, better electrical utilization, among others.
To implement this type of audit, the support and joint work of specialists in areas. Such as economics and the environment is needed.
Medical Audit
It is a type of audit where a periodic and critical assessment is made. Specifically of the service and quality of the medical care received by patients in clinics and hospitals. Actually that carried out through the review of the medical records and the hospital statistics.
Social Audit
It is the audit that examines and evaluates the ethical and moral behavior, around the objectives of the organization. In order to present a report that establishes actions to improve their social derivations.
Inventory Audit
This valuation allows establishing the verification of inventory records, according to the physical counts. In order to investigate and clarify the differences that may arise in it.
Cash Audit
It is that audit that performs a detailed analysis of cash transactions made with cash and checks. In order to verify that the money has been formally registered. Also that the payments have been appropriately authorized.
To conclude, it is worth mentioning that regardless of the types of audits carried out. Its main objective will always be to review and evaluate the facts. As well as phenomena and operations carried out by the entity. So that these can be developed according to how they were planned. Also in the same way the established policies and guidelines are respected. In addition all fiscal and legal in general are complied with.
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