Types of audit and their characteristics

Types of audit and their characteristics depend on the goals that are pursued in the process of implementing a consistent economic audit. Audit is the process of checking accounts for its compliance with the requirements of the PBU and the norms of the current legislation required for accounting, and preparing consolidated financial statements for all business entities regardless of their organizational forms.

Depending on the person interested in obtaining such financial information, the types of audit classification of this activity differ and are divided into separate types. This audit is proactive and mandatory. Depending on the scope of the audit, the general, exchange audit, banking, insurance and other types also differ.

Types of audit and their characteristics are different and selected objects of accounting for the implementation of the audit. This can be the production part of the accounting department or its financial component.

Voluntary audit is usually carried out on the initiative request of one of the founders or by decision of the economic entity itself. As a rule, an initiative (complex) audit is conducted to analyze the state of all accounting at the enterprise, but it can also be thematically directed. All components of the manufacturing process are exposed to the audit, starting with the output, the formation of its cost and the way of sale, including mutual settlements with suppliers and customers. Voluntary audit is aimed at identifying the reliability, accuracy of figures, identifying weaknesses in certain stages of production activities, as well as measuring the relevance and relevance of the release of this product (service).

Compulsory audit, in contrast to a voluntary audit, is conducted at the request of government agencies. Types of audit and their characteristics by the methods used to implement these goals are identical. The following accounting methods are distinguished: continuous, selective and visual. A solid method is used to audit cash, banking transactions and mutual settlements with buyers or suppliers. The selective method is applied at audit of industrial stocks, calculations under the salary. The visual verification method is used for the inventory of individual accounting objects.

Regardless of the purpose of the audit report, all types of audit and their characteristics largely depend on the quantity and quality of the primary documents submitted for verification , on the reliability of the information provided and on its timeliness. Therefore, all types of audit include the development of an audit control plan. The following points are necessarily included in the concept of this plan for a certain type of audit. This is the purpose of the audit, the sections of accounting that are subject to control, the methods of verification, the list of primary internal documents provided to auditors to study information on the activities of the enterprise, for preliminary assessment of audit risks, to determine the timeframes for the audit, to prove the validity of the audit report.

Currently, all types of audit of economic activities of any entity in general, and separately at different stages of the production process are very important. Since, only a justified and reliable conclusion of independent auditors of experts makes it possible to judge possible risks in the further activity of the enterprise, it allows to make a responsible decision on the development of new business projects, and also to correct mistakenly accepted management decisions and remove inefficient standards of business management.