Types of audit is a rather branched concept. According to a number of criteria, types of audit are classified into separate groups. The concept and types of audit are different.
Based on the user's attitude to information , these types of audits are distinguished. External (checks with the help of an invited specialist), which includes checks at the request of the subject of the economy and checks at the request of the law. The invited auditor conducts an audit based on the contract concluded with the client. The peculiarity of inspections of this type is that the external auditor is a person not interested in the results of inspections (not the founder, not the shareholder, etc.). The purpose of his work is to confirm the reliability of financial statements and establish the state of economic activity of the audited object.
An internal audit is an audit conducted by specialists who are subordinate to a given economic entity. Internal audits are aimed at solving the problems of functional management, ensuring the efficiency of the economic development of the enterprise and its subordinate structures, as well as helping employees more efficiently perform their work.
Based on the attitude to the requirements of the legislation , these types of audits are distinguished. If required, verification is carried out in accordance with the requirements and criteria established by law. Mandatory checks are carried out with a certain periodicity and are aimed at confirming the legality of conducting business operations, their correct reflection in accounting. Initiative (verification is carried out only at the request of the business entity, its owner or the supervisory body of this business entity). The main goal is to identify deficiencies in accounting, reporting , etc. to assist employees in preparing for the mandatory audit.
Depending on the object of inspections, they distinguish between general, banking, audit of insurance bodies, audit of exchange-traded funds and investment institutions.
Depending on the time of the audit, there are types of audit initial, repetitive (agreed) and operational. The initial one is very time-consuming and complicated, as it is carried out for the first time at a specific facility.
Depending on the nature of the checks , a system-oriented, confirmatory audit based on risk is distinguished.
According to its purpose, an audit is tax, an audit of financial and accounting statements, price, operational and managerial, for compliance with requirements and an audit of economic activity.
Audit of accounting - the audit of reports to conclude that it meets the criteria for accounting. Compliance - verification of compliance with standards, laws and regulations. It can be carried out in relation to personnel and shareholders. Operations and management is conducted to verify the functioning of the enterprise units in order to identify efficiency and reliability for management purposes. The tax purpose of the audit is the relationship of the organization with the tax authorities regarding the payment of taxes and other payments. Special includes technical, environmental and other types of audit.
Types of audit and audit services are divided not only into basic, but also related. Auditors are entitled to provide related services. These include services that are compatible with audits: setting up accounting, monitoring reporting, monitoring taxation, analyzing financial activities, evaluating investment projects, recruiting staff, conducting various seminars, computerizing accounting, etc. Auditors can also provide services that are not compatible with conducting client audits: maintaining, restoring accounting, preparing tax returns, accounting and financial statements.