What are the major types of audits: Essay

What are the major types of auditing

800 Words

Conventionally, auditing primarily associated with getting valid information about the financial systems as well as the financial records of a firm or business.  But, nowadays, it already involves other non-financial areas in non profit organizations and government agencies such as safety, security, information systems performance and environment concerns. Similarly,   it is a process of evaluating a person, organization, system, company, project or product.  In the same way it applies also to project, quality and energy conservation management.  As a result, there are now audit professionals who specialized in security audits, information systems audits, andenvironmental audits. This process is performed by accounting professionals in order to assure the validity and reliability of information; as well as to provide an assessment on the internal control of the organization.  The goal of auditing is to express an opinion of the person / organization / system in question, under evaluation based on work done on a test basis.  Additionally, it seeks also to provide reasonable assurance that the finding and statements are 100 percent free from any error.  And, in the case of financial auditing, there must be a set of financial statements    to be showed up which are valid and completely free from misstatements.  This will be based on both quantitative and qualitative research.

 

(http://en.wikipedia.org/wiki/Audit)

 

On the other hand, in cost accounting, auditing is a process for verifying the cost of manufacturing or producing of any article, in measuring the use of material, labor or other items of cost.  In this connection, cost auditing, is a systematic and accurate verification of the cost accounts and records, and checking for adherence to the cost accounting objectives. An audit must adhere to accepted standards established by governing bodies. These standards assure third parties or external users that they can rely upon the auditor’s opinion on the fairness of financial statements, or other subjects on which the auditor expresses an opinion. Furthermore, auditors of financial auditing are divided into two types.  First is the external  or statutory auditing , this is an independent public accounting firm  that  deals with auditing and expressing a valid opinion on the company’s financial statements.  In addition, external auditors are   independent auditors who are being paid by various companies for auditing job.  The second is the internal auditing; the   internal auditors are employed by the company to do the internal auditing on the financial transactions and statements of the organization. The internal auditors are performing different audit procedures related to the policy over the effectiveness of the firm’s internal control over the financial reporting.   Whatever the results of the financial auditing, it may be forwarded to the shareholders, banks and whoever that is authorized to see the evaluation of the financial standing of the company.  Also, the main objective of the financial audit is to make sure that no one in the company is practicing any fraudulent act.  Subsequently, quality auditing is performed to be able to verify the conformity to standards by reviewing the objective evidence.  The quality audits can verify the effectiveness the quality of the management system of problem areas.  For the benefit of any organization, quality auditing must also report the areas of good practice as well as it enables to provide evidence of conformance.  By doing this, other departments of the company can share various information and modify their working attitudes and practices later on.

 

(http://www.wisegeek.com/what-is-financial-auditing.htm)

 

On the other side, there is another kind of auditing and that is the Scientology auditing.  It is a unique form of personal counseling to an individual which helps him    to   analyze his   own existence and improves his or her ability to confront what he is and where he is. There are vast differences between the technology of auditing and other forms of counseling. The person being audited is completely aware of everything that happens. Auditing is an accurate as well as thoroughly codified activity along with the exact procedures.   A person trained and qualified in applying auditing to individuals for their betterment is called an auditor. He is the one who listens.    He is a minister or minister-in-training of the Church of Scientology. He is a person who receives auditing and called a preclear, meaning a person who is not being clear about the status of her life.     However, New Era Diabetic auditing is also a peculiar process to evaluate the mental status of a person. This kind of auditing is freeing a person   from anxieties, fears,   unpleasant emotions and pains; as well as it provides the person a new level of self-determination to become better individual.

 

(http://scientologyexposed.50megs.com/auditing.html)

 

References:

 

http://en.wikipedia.org/wiki/Audit

 

http://www.wisegeek.com/what-is-financial-auditing.htm

 

http://scientologyexposed.50megs.com/auditing.html