Audit means an official inspection of an organization’s accounts, typically by an independent body to make sure that all departments are following documented system of recording transactions.
Importance of Audit
- It helps in the detection and prevention of errors and frauds.
- It helps in maintaining the records and verification of books of the books of accounts.
- It provides credibility to a set of financial statements.
- It helps to examine the reliability and validity of financial statements.
Types of Audit
There are so many types of audits, some of them are given below:
- Internal Audit
- External Audit
- IRS tax Audit
- Financial Audit
- Operational Audit
- Payroll Audit
- Government Audit
- Management Audit
