Audits
Internal Audits
1. Conducted internally by the organization’s own audit team or an external firm.
2. Focuses on reviewing and evaluating the effectiveness of internal controls, risk management processes, and operational efficiencies.
3. Aims to identify areas for improvement, ensure compliance with policies and regulations, and mitigate risks.
Stock Audits:
1. Also known as inventory audit.
2. Involves verification of physical stock (inventory) against recorded quantities in the books of accounts.
3. Ensures accuracy of inventory records, detects discrepancies, and prevents fraud or misappropriation of stock.
Process Audit:
1. Also known as inventory audit.
2. Involves verification of physical stock (inventory) against recorded quantities in the books of accounts.
3. Ensures accuracy of inventory records, detects discrepancies, and prevents fraud or misappropriation of stock.
Statutory Audit:
1. Mandatory external audit conducted annually as per statutory requirements.
2. Carried out by an independent firm of auditors appointed by the shareholders or regulatory authorities.
3. Reviews financial statements to ensure they present a true and fair view of the company’s financial position and performance.
Branch Audit:
1. Specifically audits the financial statements and operations of branches or units of a company.
2. Typically conducted for large organizations with multiple branches or locations.
3. Ensures that financial reporting from branches is accurate and complies with company policies and statutory requirements.
