Based on the audit and the scope of the audit, audits are divided into several types. Anything?
1. Type of Audit Based on Examination
There are 4 types of audit based on the examination, including:
- Financial statement audit, an examination that includes how to collect and evaluate report evidence. These audits are generally carried out by external audits and at the request of the client.
- Operational audit (Management audit), an examination that analyzes several parts, from procedures to operating methods of a company to review the efficiency and effectiveness of a job.
- Compliance audit, an examination that aims to consider the correctness of the client in following certain rules that have been set by a party.
- Performance audit, an examination conducted on government agencies to determine 3E (economical, effectiveness and efficiency) by taking into account the costs and benefits for the company.
2. Types of Audits Based on Examination Area
Meanwhile, if you look at the scope of the examination, audits are divided into two types, namely general audits and special audits.
- General audit or general audit, this type of audit includes financial statements led by an independent Public Accounting Firm (PAF), to evaluate and give an assessment on the reasonableness of the financial statements as a whole.
- Special audit, a type of audit conducted on a limited basis and requested by the company for a smaller scope.
Audit Objectives and Benefits
Basically, the audit aims to make the company better in the future. The purpose of a company doing so is to check the completeness, accuracy, existence, assessment, classification, determination, cut-off and disclosure of the company itself.
Meanwhile, the benefit of hong kong audit firm is to increase the integrity of financial statements that can be trusted for the benefit of external parties, such as shareholders, government, creditors, and others.
Audit actions can also prevent fraud that can be carried out by company management.
Audit is useful not only for the company being audited, but also for other parties.