Types of Audit and objectives

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Types of Audit and objectives

It is important to understand what a financial and accounting audit is before you do it in your company.

What is a financial audit?

Before detailing the different types of audit, it seems essential, if not essential, to give the definition of a financial audit as such. So what is it?

Definition of a financial and accounting audit: in the broad sense of the term, it is a professional expertise performed by a competent, impartial and totally disinterested person. This expertise can concern a wide range of aspects. It may be financial statements, procedures, internal control, the entire organization, or several targeted departments, and so on.

The financial auditor, evaluates, investigates, verifies and controls the various aspects related to the audit.

This procedure consists, among other things, in ensuring that regulatory and / or prescriptive requirements are met.

If the audit is currently perceived in a pejorative way by a large number, it must be known that it is, above all, a tool for improvement. Indeed, a financial and accounting audit aims to make a global point on the state of the company, to detect its strengths and weaknesses in order to be able to work on them. Non-compliant aspects can also be managed through this.

Types of Audit Services:

Each audit type has distinct features and objectives. Some examples of audits:

  • Financial or Accounting Audit:

This is, no more and less, control and registration of the accounting of the company. This type of valuation is done by a chartered accountant or auditor and aims to correct the financial statements of the company itself.

This audit has close relations with the financial audit. Indeed, it is one of the consequences. In the case of an internal audit, the objective is to carry out an evaluation of the company itself, independently of the organization. As in the previous case, the mission of this type of audit is to review the accounting and financial statements, as well as the proper functioning of the company. This is a form of control and evaluation of the accounting and financial aspect of the business

  • Audit of operations:

In this type of audit, the objective is to evaluate the good functioning of the company in a much more normative way, in accordance with the laws and the French standards relative to the companies. In this way, all policies and standards imposed by the company are reviewed to see if they are being complied with.

  • The administrative audit:

Thanks to the administrative audits, the effectiveness of the results can be evaluated within a company, taking into account all its raw materials, its human or financial resources and its way of working.

  • Tax audit:

It is undoubtedly one of the most used types of audits in Pakistan companies. Its main purpose is to verify that the payment of taxes and all types of tax payments are in order and that they are or have been made at the right time.

  • Integral auditing:

The approach of this type of audit is to verify the effectiveness of all the resources that the company possesses. It is achieved by carrying out an examination or an evaluation test in which the level in which the human, financial, material or accounting resources of the enterprise operate, to assess whether their operation and execution are correct.

What you must remember:

Soft Accounting provides the audit services in Lahore and Audit Services in Pakistan to makes it possible to check whether the regulatory requirements are being applied and this, whether at the financial, accounting, administrative, etc. level.