There are many types of audits in the accounting and auditing field. Each of them carries different map to the authorities, company and persons. However, they are the people who guarantee all the information in the fiscal statements is follow the guideline of those recognized accounting and audit criterions. They are non delegating to happen out the fraud, maltreatment and plan non-compliance. Alternatively, their function is to guarantee that the fiscal statement is reasonably presented. ( Brook, EXPLORING THE VALUE OF Financial Statement Audits, 2011 )
FINANCIAL AUDITS
This type of audits is concentrating on analyzing the adequateness of the internal controls procedures, which include the recording, accounting and coverage of the concern minutess. They besides make certain that the dealing is recorded based on the Generally Accepted Accounting Principle ( GAAP ) . It will measure the truth and dependability of the fiscal statement by look intoing through the grounds of the dealing, such as reception, bill and measures. It can besides measure the economic activity of the company through the gross and disbursal rhythms, which include the sale and buying. The hearer will more concern about the control of the assets in order to safeguard the assets of the peculiar company.
INFORMATION SYSTEMS AUDITS
This type of audits is address on the automated information treating systems and computer-based system ‘s elements. It evaluates the input, treating control, end product, security, backup and recovery programs and so forth. Besides, it besides focuses on the constructive betterment, so that the processing system can be carry out more expeditiously. In this audits, they need to execute general controls reappraisal, application controls reappraisal and system development reappraisal. General controls reappraisal pull off the development, operation of the application system and measure the informations centre, runing system, security package and so forth. Application controls reappraisal is controls of the specific application system such as input, processing and end product of the systems. System development reappraisal is about the development of new application system and normally there is a new operating environment or proficient platform needed.
Conformity Audited account
This is a comprehensive reappraisal of the internal operations of a company whether they are following the regulations and ordinances. Normally, this sort of auditing is verified by the regulative organic structure. For a departmentalization company, several hearers are needed for scrutinizing the operation of each of the section. The hearer will hold a meeting with the caput of section or director to corroborate the information of employees who merely added or leaved the company and the information of the admin staff that are allow accessing to the critical systems. In order to installation the procedure, event log direction package is prepared for the hearer to acquire the proven and grounds of the company that they are in conformity.
FOLLOW-UP AUDIT
This is an audit that focal point on evaluate the effectivity of the disciplinary action. They need to guarantee that the action plans that recommended is carry out within the clip frame. The follow-up audit may discourse with the old hearer who give the recommendation, look into the papers and the public presentation of the employees to measure the advancement of the disciplinary action. This type of audit is of import for the company to pull off their concern as stated in the mission and vision. This is due to the disciplinary action can be implement comprehensively and efficaciously when there is some jobs happen.
FORENSIC Audited account
When there is a condemnable instance such as fraud, peculation, money laundering and other fiscal claims, the audit needs to roll up the forensic grounds which is dependable for the usage in tribunal. They are able to cipher the losingss that consequence of the fiscal instance. The company hires the forensic audit to look into their employees and directors whether they have involved in the illegal instance and unsuitably usage of the resources. The betterment of transparence of the ways resources used can minimise the fraud instance and potency of the involvement conflicts happen. Harmonizing to R.A. Anderson, eHow Contributor, a forensic hearer can carry on research on Torahs and ordinances and therefore fix written studies to give recommendations. ( Anderson ) This shows that, forensic audit is of import for the development of Torahs and ordinances.
OPERATIONAL Audited account
This type of audits besides called as public presentation audit. It is focus on whether the company had to the full utilized their resources and used it in the efficient and effectual manner to accomplish their mission and vision. Their besides concern about whether the ways of operation or patterns of the employees is harmonizing to the established ends and programs. This can guarantee that their mission can be achieved. The information and beginnings used are the operational policy and accomplishment that is related to company ‘s ends.
G.EXPLAIN THE MEANING OF TRUE AND FAIR VIEW
“ True and just position ” is one of the accounting constructs applied to guarantee that the fiscal study is relevance and dependable. The company should fix their fiscal study harmonizing to all the accounting rule and therefore, the rule of “ true and just position ” can be achieved automatically. It promotes that the company should suitably unwrap their accounting information and non all the truth about the company. It means that they can do some judgement and appraisal in the study such as proviso of dubious debt, as prudence is besides one of the accounting rules. When the fiscal study is verified by an audit and fulfills the standards of comprehensibility, relevancy, consistence, comparison, dependability and objectiveness, it can be considered as a “ true and just position ” .
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