The concept and types of audit

Types of auditThe concept and types of audit

The definition itself is an independent and objective verification of accounting and reporting activities, as well as various tax and payment transactions and other financial transactions of economic entities. Audit, as a generalized concept, allows you to establish the accuracy and correctness of the previously described financial and business operations, as well as their compliance with the required legislative documents and acts. Consequently, the existing types of audit and audit services give enterprises the opportunity to analyze and adjust their activities in accordance with the most effective development path. Such events protect organizations from unreasonable costs and the risk of bankruptcy. However, before it is necessary to understand what constitutes an audit activity.

Types of audit

The concept and types of auditThe whole complex of measures can be divided into two main categories, which are called external and internal audit. Of course, each of these groups includes many subgroups.For example, the first category is divided into three main classes: initiative, obligatory and special. Such a division considers the types of audit according to the level of mandatory inspections. Consider each of the subgroups.

Initiative audit

It is made on the basis of decisions of the organization acting as the initiator of the check. At the same time, the scale and direction of such studies are also determined by the economic entity. It should also be noted that these types of audits should be carried out only after the conclusion of the relevant agreement with the audit firm.

Mandatory checks

They take place in cases when it is established by legislative acts or can sometimes be carried out on the instructions of state and departmental bodies. The scope and nature of such inspections is regulated by the regulatory documentation.

Types of audit and audit services


These types of audits are necessary for the analysis of specific aspects of production activities and are carried out to identify correspondences for the conduct of various activities regarding the existing norms, procedures and rules.

By type of activity

The audit is divided into insurance, banking, general, and also includes the verification of investment institutions. The first type allows you to check the documentation and activities of insurance companies. The second is analyzing the direction of development of institutions providing credit and banking services. The third - is engaged in the verification of organizations carrying out other kinds of activities. The latter, in turn, monitors and inspects stock and commodity exchanges, as well as investment institutions.

Internal audit

Unlike all types described earlier, this type is an element of internal financial control of an enterprise. It is typical for large organizations and firms with many branches. The main purpose of this type of analytical activity is to help employees in the effective implementation of their functions.

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