Types of audit and their characteristics
Types of audit and their characteristics depend on the objectives,which are pursued during the implementation of a consistent economic audit. Audit is the process of checking accounts for its compliance with the requirements of the PBU and the standards of current legislation required for accounting, and preparing consolidated financial statements for all business entities regardless of their organizational forms.
Depending on the person who is interested inthe receipt of such financial information types of audit classification of this activity are different and are divided into separate types. This audit is proactive and compulsory. 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 audit. It can be the production part of the accounting department or its financial component.
A voluntary audit is usuallyinitiative requirement 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 be thematically directed. All components of the production process are exposed to the audit, starting with the production, the formation of its cost price and the way of realization, 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 to measure the relevance and relevance of the release of this product (service).
Mandatory audit, as opposed to voluntaryaudit, is held 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: solid, 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 on the salary. The visual verification method is used for the inventory of individual accounting objects.
Regardless of the purpose of the auditConclusions all types of audit and their characteristics largely depend on the quantity and quality of the initial documents submitted for verification, on the degree of 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 to be 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 business auditactivity of any subject as a whole, 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 future activity of the enterprise, it allows to make a responsible decision on the development of new business projects, as well as correct mistakenly accepted management decisions and remove inefficient standards of business management.