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7/30/2019 TYPES OF AUDIT.ppt
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NAME : BHAVESH JAIN
STD:T.Y.BCOM
ROLL NO:8027
SUB:AUDIT & TYPES
OF AUDIT
2ND TERM
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Defination
What is auditThe general definition of an audit is
an evaluation of a person, organization, system,
process, enterprise, project or product. The
term most commonly refers to auditsin accounting, but similar concepts also exist in
project management, quality management,
water management, and energy conservation.
http://en.wikipedia.org/wiki/Evaluationhttp://en.wikipedia.org/wiki/Accountancyhttp://en.wikipedia.org/wiki/Accountancyhttp://en.wikipedia.org/wiki/Evaluation7/30/2019 TYPES OF AUDIT.ppt
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Following are
the types ofAudit
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1.Government auditingAudit forms an indispensable part of the financialadministration
and is one of the important organs necessary to ensure
the sound
functioning of a Parliamentary Democracy. It is the main
instrument to
secure accountability of the Executive to the Legislature.
Audit assists
Parliament/Legislature in exercising its financial control
over the
Executive, to ensure that funds voted by the
Parliament/Legislaturehave been utilized for the purpose intended and the funds
authorized to
be raised through taxation and other measures have been
assessed,
collected and credited to the Government properly.
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2.Audit control
State Audit is the main instrument tosecure accountability of the
lower formation in the set up to the
Administration and of the
Administration to the Legislature in thearea of financial
administration. The scope of State
Audit encompasses following
elements:
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A. Fiscal accountability
This includes fiscal integrity, full disclosure and compliance
withapplicable laws and regulations.
B. Managerial accountability
It is concerned with efficiency and economy in the use ofpublic
funds, property, personal and other resources.
C.Programme accountability
To check whether Government programmes andactivities are
achieving the objective established for them with due
regard to both
costs and results.
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3.Financial Audits
Address questions of accounting,
recording, and reporting of financial
transactions. Reviewing the adequacy of
internal controls also falls within the scope
of financial audits.Compliance Audits seek to determine if
departments are adhering to federal, state,
and University rules, regulations, policies,and procedures.
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4.Operational Audits
Examine the use of department/universityresources to evaluate whether those resources are
being utilized in the most efficient and effective
way to fulfill the department's/University's missionand objectives. An operational audit may include
elements of a compliance audit, a financial audit,
and an information systems audit.
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5.Investigative Audits
Are performed when appropriate. These audits focus
on alleged violations of federal and state laws and of
University policies and regulations. This may result in
prosecution or disciplinary action. Internal theft,
misuse of University assets, and conflicts of interestare examples of investigative audits.
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Information Systems (IS) Audits addressthe internal control environment of
automated information processing
systems and how these systems are used.IS audits typically evaluate system input,
output and processing controls, backup
and recovery plans, and system security,
as well as computer facility reviews.
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THANKYOU.