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AUDITING



What Is Auditing?
The audit is a process where an official inspection of an organization occurred. The aim is to check and verify the true and fair transaction in the company. Audit provides the assurance to stakeholder that the subject matter is completely true and there is no mis-statement.
 Audit can be done by two ways one is internally which is done by employees of the company and the primarily focus on operation audit and other is by a professional auditor which works with an audit team called external audit.

Types Of Audits:
1. External Audit: This audit requires professional code of ethics as this is perform by professional team. They follow the International Standard of Accounting/Auditing.

2. Internal Audit: The is basically an audit where the auditor is appointed within the company from internally and he gives the report to the management.

3. Statutory Audit: This Audit is legally requiring the accuracy of a company’s financial statement and records. The aim is to determine whether the company is providing fair and accurate representation of its financial position or not. The audit which is carried every year is called statutory audit.

4. Interim Audit: This audit is conducted between the time period of two audit. The purpose of this audit is to find out the interim dividend.

5. Final Audit: The audit which is performed for the final purpose or for the closure is called final audit.