Auditing plays an important role in ensuring the financial integrity and stability of a business or a company. It is a systematic process of examining and evaluating an organization's financial records, transactions, and internal controls to provide an independent and objective assessment.
Statutory audits are mandated by the laws or regulations of a particular country or jurisdiction. These laws typically specify the types of entities that must undergo a statutory audit, such as public companies, large private companies, or entities receiving public funding.
Internal audits evaluate a company's internal controls, including its corporate governance and accounting processes. These types of audits ensure compliance with laws and regulations and help to maintain accurate and timely financial reporting and data collection.
Concurrent audit is a systematic examination of financial transactions on a regular basis to ensure accuracy, authenticity, compliance with procedures and guidelines.
The purpose of a tax audit is to validate the income tax computation made by the taxpayer in the income tax return and to ensure compliance with the laws of Income Tax.
When an audit is to be conducted under special circumstances of the accounts of a company and it is independent of the annual audit of the accounts of the same company.
Stock audits involve the physical verification, counting, and valuation of a company's inventory or stock holdings to ensure accuracy and prevent discrepancies. They help businesses maintain proper inventory control, identify potential losses or theft, and ensure the integrity of financial reporting.