Audit

ACCA - F1   ACCOUNTANT  IN  BUSINESS

Understanding different types of audit:

Public Sector Audit - audit of state owned enterprises by public sector auditors. Responsible for strengthening public sector accountability, governance and transparency.

Tax Audit - to access accuracy of tax return filed by the company.

Statutory Audit / External Audit / Financial Audit - examines truth and fairness of financial statement and provides independent opinion.  

Forensic Audit - investigation audit to detect fraud, insider trading, money laundering, insurance claim and professional negligence.

Environmental Audit - assessment of environmental and social footprint. E.g. verification of CO2 emission

Value for Money Audit / Performance Audit - assessment of economy, efficiency and effectiveness of organisation's use of resources. Mostly relevant to public sector and not-for profit organisations.

Information System Audit - assessment of control relevant to IT infrastructure within an organisation.

Internal Audit / Operational Audit - monitors effectiveness of internal control and compliance.

Compliance Audit - assessment of compliance with law and regulations.

Internal Audit vs. External Audit

	Internal Audit	External Audit
Role	Advise	Opinion
Legal basis	Not-required	Required
Scope	All area	Statutory financial focus
Approach	Risk based Test operation	Risk based Test underlying
Responsibility	Advice and recommendation	Form opinion

Introduction to Audit - Types of Audit