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Type of Audit by Examination

Audits are divided into several types based on the angle of their respective studies. Some of them are based on the field and area of ​​examination. Since hong kong audit firm activities can also be defined more briefly as an evaluation or examination process, the following are several types of audits based on the scope of the audit field.

Financial Statement Audit (Financial Statement Audit)

The audit of financial statements relates to the exercises of gathering and assessing proof in regards to the reports of an entity with a view to providing an opinion or opinion about the report whether it is in accordance with generally accepted accounting criteria and principles or not.

Operational Audit (Management Audit)

This type of audit includes an examination of the operational activities of a company, like bookkeeping approaches and the board functional strategies with the aim of ensuring that the operations carried out run effectively and efficiently.

Compliance Audit

As the name implies, the compliance audit aims to ensure that the company has complied with the applicable regulations and policies, both policies set by internal parties and external parties from the entity or company. This audit plays a role in determining the extent to which the organization conforms to pertinent unofficial laws, policies and regulations and which the audited entity must comply with.

Performance Audit

Performance audit serves to test the level of economy, efficiency, and the effectiveness of the use of resources in achieving goals. This kind of review is subjective and insightful utilizing indicators, standards, and performance targets. The performance audit is intended to consider the cost benefit analysis while at the same time improving the optimal allocation of resources. The other benefits are:

  • Increase income
  • Reducing costs or spending
  • Improve efficiency and productivity
  • Improving the quality of services provided
  • Raise awareness of transparency and accountability in management for a more efficient use of public resources

An audit process that occurs in a company itself can be called an internal audit carried out by an internal auditor who in addition to being able and having audit techniques, must also understand risk management, governance processes, and the characteristics of business units that can be studied in the book Modern Internal Auditing. .