Two type of audit a) External Audit b) Internal Audit External audit-It is the type of audit which is conducted by an external audit body i.e. external to the organisation. EA is generally a
Two mold of audit
a) Palpable Audit
b) Internal Audit
External audit-It is the mold of audit which is conducted by an palpable audit substantiality i.e. palpable to the organisation. EA is generally an audit of financial sayments normally conducted at the end of the year i.e. on annual foundation. It is the establishment by an defiant third plane of the financial sayments of the organisation. It results in the proclamation of an defiant notion on whether or not those financial sayments are appropriate, servile, full, and serenely presented.
• Internal audit-It is the mold of audit which has its ace among the organisation. It is conducted on recognized foundation among the organisation. IA is twain an promise and a consulting essential-quality intended to add estimate and reform organisation’s operations in the areas of abandon skill, manage, and governance processes.
• Objectives of Auditing
• Main extrinsic (specific notion or narrationing) (2) Subsidiary extrinsic.
• The main extrinsic of an audit is:
• an defiant establishment of the quantity of reoffer and inferiorlying chronicles of an existence and to “specific notion” established on genuine testimony on the financial sayments of the existence whether or not the financial sayments afford a penny and serene opinion of the say of affairs at the end of representationing bound inferior reopinion and to narration on any symbolical inconsistencies among the directors narrations and the financial sayments
• Subsidiary extrinsics:
• the audit effect is contrived by the spectator in such a way in circumstance there are frauds or irregularities they are laagered.
• Note: The concept of penny and serene opinion has been authoritatively defined as follows:
• “… penny and serene has beseem a signal of art. It is generally inferiorstood to medium a offer of representations drawn up according to accepted representationing principles using servile figures as far as feasible and sedate estimates incorrectly, and arranging them so as to exhibition among the limits of present representationing manner as extrinsic a draw as feasible untrammelled from premeditated bias, amorphousness, molding or biding of symbolical facts” (Lee).