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NAME : BHAVESH JAIN

STD:T.Y.BCOM
ROLL NO:8027 SUB:AUDIT & TYPES OF AUDIT 2ND TERM

Defination What is audit


The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, water management, and energy conservation.

Following are the types of Audit

1.Government auditing
Audit forms an indispensable part of the financial administration 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/Legislature have 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.

2.Audit control
State Audit is the main instrument to secure accountability of the lower formation in the set up to the Administration and of the Administration to the Legislature in the area of financial administration. The scope of State Audit encompasses following elements:

A. Fiscal accountability This includes fiscal integrity, full disclosure and compliance with applicable laws and regulations. B. Managerial accountability It is concerned with efficiency and economy in the use of public funds, property, personal and other resources. C.Programme accountability To check whether Government programmes and activities are achieving the objective established for them with due regard to both costs and results.

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.

4.Operational Audits
Examine the use of department/university resources to evaluate whether those resources are being utilized in the most efficient and effective way to fulfill the department's/University's mission and objectives. An operational audit may include elements of a compliance audit, a financial audit, and an information systems audit.

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 interest are examples of investigative audits.

Information Systems (IS) Audits address the 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.

THANK YOU.